Pension Fund M&G Invests $20M Into UK Crypto Derivatives Platform GFO-X
- This action shows that institutional trust in cryptocurrencies has shifted for the better.
- The investment is a component of GFO-X’s $30 million series B capital round.
M&G Plc, an enormous London-based pension fund, recently invested $20 million into a British crypto derivatives trading platform, GFO-X.
A cryptocurrency derivatives trading platform located in the United Kingdom, GFO-X, has received a $20 million investment from M&G Investments, the asset management division of pension behemoth M&G Plc. In the wake of FTX’s demise last year, this action shows that institutional trust in cryptocurrencies has shifted for the better.
The investment is a component of GFO-X’s $30 million series B capital round. M&G’s Crossover strategy, representing the £129 billion Prudential With-Profits Fund, is the designated investor. Launching a service dubbed LCH DigitalAssetClear by the end of 2023 was the original goal of GFO-X’s strategic cooperation with LCH SA, a business controlled by the London Stock Exchange Group.
Institutional Backing
Due to customer demand, this service has had some delays but is projected to be active in the first quarter of 2024. Its purpose is to settle Bitcoin index futures and options contracts transacted on GFO-X. The fact that M&G is putting money into GFO-X suggests that institutional backing for crypto may be changing.
It has been abundantly obvious this year that traditional institutional actors have been increasing their presence in the cryptocurrency industry. Spot Bitcoin ETF’s anticipated release has prompted analysts to predict that established banks’ involvement in the cryptocurrency sector would only increase going forward.
The week got off to a rocky start as the two biggest cryptocurrencies, Bitcoin and Ethereum, saw a downward trend in intraday trade. According to statistics compiled by CoinMarketCap, Bitcoin had a steep 5% daily decline, falling as low as $41,649 before regaining ground to trade at $42,510.
Highlighted Crypto News Today:
Bitcoin Price Plunges Over 5%, Find Out Why
