PFAEFFIKON, SWITZERLAND - OCTOBER 05: The office building of the London-Based Man Group, one of the world's largest traded hedge fund, is pictured on October 5, 2009 in Pfaeffikon, Switzerland. Due to lower taxes and less regulation the small Swiss town on the shores of lake Zurich has become a hedge fund hot spot. (Photo by Miguel Villagran/Getty Images)

Man Group plans crypto hedge fund despite FTX turmoil: report

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The world’s largest publicly traded hedge fund manager, Man Group Plc, plans to launch a cryptocurrency exclusive fund early next year, according to a report by Bloomberg.

See related article: Who is exposed to FTX? A running compilation on a rapidly moving target

Fast facts

  • The report cites anonymous sources with knowledge of the matter, who said the firm has been developing the strategy led by Man Group portfolio manager Andre Rzym for months. 
  • The dedicated fund will be approved for investors only after the company assesses it for counterparty risks, according to one of the sources.
  • The news follows crypto exchange FTX’s bankruptcy filing on Nov. 11, an event that has shaken confidence in the industry. Cryptocurrency has lost over US$200 billion in market capitalization from the start of this month, according to CoinMarketCap
  • The London-based Man Group already trades cryptocurrency futures through their quant trading platform Man AHL. 
  • Earlier in the year, chief executive officer Luke Ellis told Bloomberg that Man Group was considering scaling up its involvement in crypto. 
  • Ellis previously stated that digital assets have “no inherent worth” but are a good instrument for trading due to price volatility. 

See related article: Markets: Bitcoin, other crypto start week lower as FTX collapse continues rumble through the industry

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