The asset manager New York Digital Investment Group (NYDIG) raised $150 million for its two cryptocurrency funds from just three investors.
Filings made with the United States Securities and Exchange Commission (SEC) by NYDIG reveal that the firm’s Digital Assets Fund I raised $50 million from two investors, while its Digital Assets Fund II raised a further $100 million from one single entity. Crypto industry news outlet The Block suggested that NYDIG’s Digital Assets Fund I tracks only Bitcoin, while the nature of the second fund remains largely unclear.
NYDIG describes itself on its website as “a leading financial services firm dedicated to Bitcoin” and is owned by asset manager Stone Ridge Holdings Group, which has more than $10 billion of assets under management.
NYDIG seems to be betting big on bitcoin (BTC), given that in mid-October it announced it was already holding more than $100 million in Bitcoin as its primary treasury asset and had purchased more than 10,000 BTC. A bet that has surely paid off, considering that the coin recently reached a new all-time high price.
Furthermore, the announcement also reveals that NYDIG’s “assets custody, asset management, and financing balances” already exceeded $1 billion in aggregate at the time. At the time, the firm’s co-founder and CEO Robert Gutmann said:
“As Bitcoin transitions to a predominantly institutionally-owned asset, NYDIG is better positioned than ever to be the leading provider of Bitcoin solutions to corporations, institutions, and banks.”
Gutmann’s claim that Bitcoin is becoming increasingly popular among institutional investors seems to be confirmed by facts. As Modern Consensus reported in early June, Almost 80% of institutional investors polled by Fidelity Digital Assets admitted they find something appealing in this asset class, and adoption levels are rising.
Since then, the cryptocurrency industry saw major developments take place. Most notably, Bitcoin reached the mainstream with retail adoption through Square and PayPal. With such financial giants adopting crypto, many believe that the industry will hit critical mass soon.