You can check the website statistics yourself or request them from us at [email protected]
On this platform, only organic high-quality traffic
Bitcoin
$ 30,725

M&G Invests $20M in UK Bitcoin Derivatives Platform GFO-X

UK asset management firm M&G Plc has disclosed a $20 million investment in the bitcoin derivatives exchange, Global Futures & Options Holdings (GFO-X). This strategic investment aims to support the “regulated trading of digital assets” and respond to the growing demand from institutional investors.

GFO-X, in collaboration with London Clearing House—a body regulated by the Financial Conduct Authority (FCA)—functions as both a clearing house and a trading venue for derivatives related to digital currency assets.

The funding, part of a series B funding round, was spearheaded by M&G’s public equity investment division and executed through M&G’s Crossover strategy. This financial commitment was made on behalf of the £129 billion Prudential With Profits Fund, reflecting M&G’s commitment to participating in the evolving landscape of regulated digital asset trading.

Lack of Regulated Venues Hampering Growth

Following the collapse of FTX, a cryptocurrency exchange involved in spot, derivatives, and leveraged trading for cryptocurrencies, the price of Bitcoin experienced its most significant drop since 2020. This incident has intensified concerns about trust within the cryptocurrency space, prompting calls for increased regulation around exchanges.

M&G Portfolio Manager, Jeremy Punnett, expressed his perspective on the matter, stating, “The lack of regulated trading venues is materially hampering the growth of the digital currency trading market.” In a press release, Punnett emphasized that the UK possesses the potential to emerge as a global hub for digital asset technology and investment. He highlighted London as an ideal location for GFO-X’s new global trading venue.

The investment from M&G, according to Punnett, serves as a means for GFO-X to expand its operations, positioning the business to capitalize on the trend of investors transitioning their trading activities from unregulated to regulated venues. This move reflects a broader industry push for enhanced regulatory oversight to foster greater confidence and stability in the digital currency trading market.

M&G emphasized that GFO-X aims to attract traditional financial institutions seeking a secure and regulated environment for trading digital currency derivatives. The move aligns with a growing demand from institutional investors for robust infrastructure in the digital asset space.

Citing a 2022 survey, M&G highlighted the substantial interest among institutional investors in tokenized products, with an estimated 91% expressing interest. Additionally, the survey indicated that 41% of institutional investors currently hold cryptocurrencies, and a further 15% have plans to incorporate digital assets into their portfolios over the medium term. This data underscores the increasing acceptance and adoption of digital assets within the institutional investment landscape. GFO-X’s focus on providing a regulated platform aligns with the evolving needs and expectations of institutional players entering the digital currency derivatives market.

Related Posts

Leave a Reply

Confirm now and stay with our news

What we write about

I want to save money. Will cryptocurrency work?

Cryptocurrency is essentially virtual money that operates in a decentralized manner, not through a bank but directly on multiple independent computers.

Every cryptocurrency has two main components: the units of digital exchange called “coins” and the network within which the exchange takes place. These units can be transferred between wallets and exchanged on exchanges. The networks in which these coins exist are called blockchains, which translates to “chains of blocks.”

Latest Articles

S&P Global Ratings joins Singapore MAS’s Project Guardian
28.06.2024By
Boden Memecoin Crashes After US President Biden’s Poor Debate Performance
28.06.2024By
Steno Research Expects $15-20B Inflows into Ether Spot ETFs, Predicts $6,500 Price Target
28.06.2024By

Latest news

S&P Global Ratings joins Singapore MAS’s Project Guardian
28.06.2024
Boden Memecoin Crashes After US President Biden’s Poor Debate Performance
28.06.2024
Steno Research Expects $15-20B Inflows into Ether Spot ETFs, Predicts $6,500 Price Target
28.06.2024
Bitcoin Mining Firm CleanSpark Acquires GRIID in $155M Stock Deal
28.06.2024
Elastos Partners With BEVM to Launch Bitcoin P2P Loans, Targeting $1.3T in Dormant Value
28.06.2024
Coinbase Files Lawsuits Against SEC, FDIC Over FOIA Request
27.06.2024
UK Watchdog Boosts Crypto Division to 100 Staff Members
27.06.2024
Hong Kong Government Explores DeFi and Metaverse to Boost Fintech Dominance
27.06.2024
Spot Ether ETFs May Receive US Approval by July 4: Report
27.06.2024
Bitcoin ETFs See Inflows for Second Consecutive Day as BTC Holds Steady at $60K
27.06.2024