During the Form D filing at the United States Securities and Exchange Commission, the New York Digital Investments Group (NYDIG) revealed that it had received $190 million in funding specifically for its Bitcoin Funds. The name of the fund is NYDIG Institutional Bitcoin Fund LP and has a total of 24 investors whose names are not disclosed. The fund was registered with the regulatory exchange in 2018. When the fund started, it raised around $31 million from 3 of its investors and was later joined by another six investors to raise $54 million for the fund.
The New York Digital Investments Group came into the limelight when in May, it received $140 million in funding for it’s another fund called Bitcoin Yield Enhancement Fund. The fund managers at NYDIG are yet to clarify if $190 million mentioned in the filing is new funds or if the previous funds were renamed. However, if $190 million are different from the previous $140 for another Bitcoin Fund, then NYDIG would become the largest institutional investor in Bitcoin with the capital of $330 million invested.
One another Bitcoin-based fund of NYDIG is the NYDIG Bitcoin Strategy Fund, which is a portfolio fund that primarily invests in cash-settled Bitcoin futures contracts of the CME Group. It is the portfolio fund that is part of the Stone Ridge Trust VI. As of now, the currency size of the NYDIG Strategy Fund is unknown, but the fund tried to raise $25 million in December last year. The fund managers have been tight-lipped about the workings of the fund or revealed other details during the regulatory filings. Even in other public platforms and channels, the fund managers refrained from providing any further details about the Bitcoin Strategy Fund.
New York Digital Investments Group is a regulated entity as well as a limited purpose trust charter in the state. It has received the BitLicense from the New York State Department of Financial Services. The BitLicense was created in the year 2015 by Benjamin Lawsky, who worked as a financial regulator previously and is now part of the New York Digital Investments Group. The NYDIG received the state license just around a year after Benjamin Lawsky joined the fund.
Recently, a Canadian Crypto Fund manager named 3iQ also added $10 million to the Bitcoin Fund, which showcases the increasing interests among the fund managers towards digital assets. As the digital assets space gets acceptance globally, the institutional investors are looking towards investing aggressively in digital assets or get Bitcoin exposure. One of the top crypto managers in the world, Grayscale, has total assets under management of nearly $4 billion.
One of the surveys conducted by Fidelity Digital Assets found that around eighty percent of more than 800 institutional investors in Europe and the United States are looking to invest in digital assets or have already invested. The exposure to cryptocurrency futures for U.S. investors in 2019 stood at 9 percent, whereas in 2020, it has increased to nearly 22 percent.