Victory Capital is now entering the cryptocurrency market through the official launch of a new private fund. According to a recent statement released by the investment management firm, they have established an agreement with Nasdaq and Hashdex to make that possible. The company will also be the sponsor of private placement funds.
Victory Capital Enters the Crypto Market
The entire cryptocurrency market continues to expand with another investment management firm entering the industry. With $157 billion in assets under management, the company will also be the sponsor of other vehicles for U.S. investors that are based on the Nasdaq Crypto index.
Marcelo Sampaio, the CEO of Hashdex, explained that they have worked on an institutional-grade index strategy that would allow them to own beta in the crypto asset class.
About this Index strategy, Mr. Sampaio explained:
“We created a dynamic index strategy that enables non-U.S. investors to make allocations to the asset class, rather than trying to pick winners. We are thrilled to partner with Victory Capital and Nasdaq to bring our investment capabilities to the U.S. market in the future.”
Victory Capital has a diversified portfolio with more than $157 billion in assets under management. The firm is also providing a wide range of specialized investment strategies to a large number of investors. Some of these investors include institutions, intermediaries, retirement platforms and also individual investors.
Institutional Investment Grows in Crypto
We have seen how institutional investment has been growing over the last years in the crypto market. Specifically, since the Coronavirus crisis started, the crypto market has onboarded a large number of new companies and investors. There is a clear interest in Bitcoin and other virtual currencies.
For example, Tesla, MicroStrategy, MassMutual and Square, among others, have invested millions of dollars in the cryptocurrency market. Other companies could follow in the future.
At the same time, El Salvador became the first country in the world to make Bitcoin legal tender. Companies operating in the country and offering goods and services are now obligated to accept Bitcoin (BTC) as a means of payment. Additionally, other countries in the region have also shown interest in joining this trend.
Thus, the future of the cryptocurrency market seems promising. Despite that, traditional financial institutions such as the International Monetary Fund (IMF) are closely following the events that are taking place in this industry considering they could have a strong impact on monetary policy.