M31 Capital, a New York-based multinational investment company, has filed paperwork with the US Securities and Exchange Commission or SEC to open a new Bitcoin (BTC) hedge fund.
The proposed fund, called M31 Capital Bitcoin Access Fund, is a limited partnership hedge fund located in Delaware, as submitted by Form D SEC on Tuesday. The minimum contribution of any outside investor has been set at $10,000. Details on the composition of the fund have not been disclosed.
M31 Money is focused solely on cryptocurrency and blockchain technologies. The firm also runs M31 Ventures, whose investment thesis is focused on the exploration of potential market prospects inside the evolving blockchain ecosystem.
Crypto hedge funds constitute a limited portion of the entire demand for crypto assets. In 2020, PwC reported that crypto hedge funds had more than $2 billion in assets under administration, more than double the previous year.
M31 Capital’s potential for blockchain is hardly unexpected considering that its co-founder, Nathan Montone, has been trading Bitcoin since 2011. Last year, Montone told Cointelegraph that more institutional investors were looking at Bitcoin as a fixed-cap, scarce currency.
Many of the new enthusiasm stemmed from the post-pandemic rehabilitation effort of the U.S. federal government, which contained trillions of newly printed stimulus dollars.
Institutional investment in digital assets grew in 2020 with fund managers including Grayscale and Bitwise drawing major capital inflows. As Cointelegraph announced on Tuesday, Bitwise’s funds under management eclipsed $1 billion, more than doubling over the course of two months. As of Monday, Grayscale’s assets amounted to $42 billion.