According to rumours circulating online, both Stone Ridge Asset Management and Soros Fund Management are accumulating bitcoin.
Stone Ridge Asset is reported to have bought $1 billion worth of bitcoin.
😱 Stone Ridge Asset Management has amassed $1 billion #Bitcoin
— Bitcoin Archive 🗄🚀🌔 (@BTC_Archive) June 30, 2021
Stone Ridge accumulates bitcoin
Back in March, the fund warned the SEC that its Stone Ridge Diversified Alternatives Fund had included bitcoin in its potential investments, with the aim of generating returns through direct exposure to the price of BTC, or by selling put options on futures contracts, or by investing in pooled investment vehicles, such as registered or private funds.
Also yesterday, news broke that one of its subsidiaries, New York Digital Investment Group (NYDIG), had signed a partnership with NCR to effectively bring bitcoin and cryptocurrency trading to 650 US banks.
There is actually no official confirmation yet that Stone Ridge has bought $1 billion worth of bitcoin, but Forbes revealed that among the $4 billion worth of bitcoin held in custody by NYDIG in February were 30,000 BTC held by Stone Ridge Holdings Group, worth about $1 billion. NYDIG now claims to have more than $6 billion worth of digital assets in its custody, so it is possible that Stone Ridge’s 30,000 BTC are still there.
Moreover, NYDIG, i.e. Stone Ridge, has been aware for months now that, thanks to the agreement with NCR, many US banks will probably start offering bitcoin trading directly from their bank accounts in the near future, and since the demand for BTC increased a lot in the past, for example when PayPal started allowing something very similar, and the price also went up, it cannot be ruled out that they stockpiled bitcoin in view of a similar dynamic.
In fact, it is possible that the speculative bubble of early 2021 is due to a large and sudden increase in demand, perhaps due to new investors introduced to the crypto market by PayPal, given that this initiative has been a huge and sudden success, and given that the user base of PayPal is very large indeed.
Soros Fund Management invests in bitcoin
Meanwhile, Soros Fund Management has also started investing in bitcoin.
This was reported by The Street, saying that the company has asked its traders to invest in BTC, probably for speculative purposes only, at least for now. The approval for this type of investment came directly from CIO Dawn Fitzpatrick, so it would be a green light to invest in bitcoin.
According to some analysts, it seems that the current phase of bitcoin’s price is an accumulation phase, whereby a number of professional investors are hoarding BTC in anticipation of a possible price rise in the short to medium term.
For example, David Puell reports that the so-called Puell Multiple has given a buy signal for the fifth time ever in the entire history of BTC.
$BTC: Getting reports that the most awesomely-named indicator just gave its fifth buy signal in BTC history.
Looking good, yes, but remember that Puell Multiple reacts to hash rate movements too, and hash rate follows price, not the other way around.
— David Puell (@kenoshaking) June 28, 2021
If the price of bitcoin is indeed in an accumulation phase, it is possible that in the next few days, or at most in the next few weeks, the price could rise back to the levels before the 19 May drop.