March 28, 2024

Renaissance Technologies received permission to trade bitcoin futures

Renaissance Technologies, one of the largest hedge funds in the world, announced that its Medallion Fund unit can nowenter into transactions with bitcoin futures.

Renaissance Technologies said it would limitits trading activities with contracts concluded on the Chicago Mercantile Exchange (CME), but it is not yet known whether the company already has open positions. In addition, Renaissance Technologies informed its investors about the risks associated with investing in bitcoin and tools based on it. The document says:

“Bitcoin is a new and highly speculative asset. Based on this, Bitcoin futures are also extremely volatile and investment results can vary greatly over different time frames. These instruments carry far greater risks and potential losses than more traditional financial instruments. Such investments must be considered as more speculative, and possible losses can be up to a complete loss of capital. ”

Medallion Fund is a highly profitable hedge fund,which from 1988 to 2018 brought its investors an average of 40% per annum. In addition, the fund, which manages $ 10 billion, has grown by 24% since the beginning of the year and in March brought its investors 9.9% profit. However, it’s not yet clear how Renaissance Technologies’s joining Bitcoin futures trading will affect the price of bitcoin, since the fund can enter both long and short positions.

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