https://www.wsj.com/articles/big-hedge-funds-want-in-on-bitcoin-1513765802 WSJ - Big Hedge Funds Want In on Bitcoin Big Hedge Funds Want In on Bitcoin Such investors are looking to profit either by buying bitcoin and other virtual currencies or by betting against them By Gregory Zuckerman Dec. 20, 2017 5:30 a.m. ET Some of Wall Street’s largest players are gearing up for bitcoin. Until recently, big-name hedge funds paid little attention to the digital currency. But the rollout of futures trading and soaring prices have some large firms considering whether it is time to wade into the market. The funds are looking to profit either by buying bitcoin and other cryptocurrencies or by betting against them. Their entry could provide a new jolt to bitcoin’s already volatile trading. Just over a month ago, executives of firms including Quantbot Technologies, which trades over $3 billion for Steven Schonfeld’s Schonfeld Strategic Advisors, and Steven Cohen’s Cubist Systematic Strategies, met for lunch to discuss ways to profit from trading cryptocurrencies, according to people close to the matter. Now, Quantbot and others say they are working to understand how they might be able to profit from bitcoin. “It’s gotten more interesting and the barrier to entry has fallen” now that bitcoin futures are available, said Michael Botlo, Quantbot’s co-founder. “We’re not planning anything near-term but once we get in, it will probably be quick.” (... ) Other big name funds, such as Ellington Management Group, which manages $6.5 billion and has focused on debt investments, are examining trading cryptocurrencies but haven’t yet made the decision to jump in, according to people familiar with the matter. “Cryptocurrencies can protect against high inflation and capital controls…And they may prove themselves as safe-havens in the next crisis,” argued Rasheed Sabar, Ellington’s head of systematic strategies in a recent white paper circulated to the firm’s investors. “We can think of them as an insurance policy against low-trust states of the world…At the same time, they may have gone up too far too fast.” (... ) Others investors say they will wait until liquidity for bitcoin futures is sufficient for serious trading. Cantab Capital, a Cambridge, England-based quant firm managing $4 billion, has been studying bitcoin trading and blockchain technology for more than a year. But Ewan Kirk, the firm’s founder, said Cantab will remain on the sidelines until enough volume emerges in futures trading so Cantab can get in and out of a position with ease. He would like to see other trading anomalies disappear, as well. (... )
If you can have either a long or short bias, which is what these funds are discussing, why would it be too late ?
It is like investing in Amazon around 2000, not necessary too late. But the picking game just got harder, assuming that the market will value the usable coins more than useless ponzis... ------------------------------- So Bitcoin effects the futures, but do the futures effect Bitcoin? Do we know if there is arbitrage or any kind of connection both ways?
They probably would want to diversify, but the futures are available only for Bitcoin. So if we are talking only about BTC, you are most likely right and they have missed the boat.
%% Good question but the headline implies a buy; but IBKR .... noted it ''has no fundamental value'' Sub headline, does agree with you. Some one asked a WSJ reporter '' is that a bubble?? His answer ='' resembles past bubbles'' LOL. Calling an $8,ooo pineapple an investment or currency does not make it one; but James Dole did well selling pineapples off his pineapple plantation. Current price $00.98/+ per pineapple can.People paid $8,000 per pineapple when pineapples were new.
Hello, It is wise and good investing to just buy bitcoin at low price and just hold it and see what happens. And get back to trading.