As a seasoned analyst with over two decades of experience in the financial markets, I’ve seen my fair share of mergers and acquisitions. This latest move by Australian crypto hedge fund manager JellyC to merge with Trovio Asset Management in Singapore is not only intriguing but also strategically sound. The aim to attract bigger allocations from investors, particularly pension funds, is a smart play, given the growing interest in digital assets across the globe.
In a strategic move aimed at securing larger investments from institutions like pension funds, the Australian crypto hedge fund manager, JellyC, has joined forces with Trovio Asset Management based in Singapore.
Based on a report by Bloomberg published on October 23rd, it has been announced that, following their merge, JellyC Hedge Fund Management will own the largest share in the joint operations with Trovio Asset Management, according to company officials.
The CEO of Trovio, Jon Deane, mentioned that they intend to get rid of their shares in the combined company at some point, though no exact timeline was given.
According to JellyC’s Co-Founder, Michael Prendiville, the merger is intended to boost the collective resources of both hedge fund managers by approximately 150%, growing them from their current value to around $250 million AUD ($166.5 million USD).
As a researcher, I’ve discovered that the focus of JellyC and Trovio appears to be on capturing the interest of major investors within the Asia Pacific region, with a particular emphasis on Australian pension funds.
“If we’re not at capacity, we won’t get the allocation,” said Prendiville.
To date, Australia has not invested its pension funds in digital assets. However, Prendiville anticipates that this could shift with time, given that Australia is moving towards establishing regulations for cryptocurrencies.
By May 2024, Coinbase unveiled plans for a new service, which aims to provide cryptocurrency investment options tailored to approximately a fourth of Australia’s $2.5 trillion retirement fund, known as the pension system.
In parallel, nations such as Japan and South Korea have invested their pension funds into crypto-related businesses. Specifically, the National Pension Service of South Korea, managing approximately $800 billion in assets, purchased 24,500 shares of MicroStrategy for a total of $33.75 million.
At present, MicroStrategy holds the most significant amount of Bitcoin among corporate entities, boasting more than 252,000 Bitcoins as part of their reserves.
The Government Pension Investment Fund of Japan, the world’s biggest pension fund, hinted in a public statement that they might be open to incorporating digital currencies like Bitcoin, as well as tangible assets such as agricultural lands, woodlands, and gold, into their investment portfolio.
In July 2024, the Michigan Retirement System allocated approximately $6.6 million towards the purchase of ARK 21Shares’ ARKB Bitcoin exchange-traded fund.
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2024-10-23 12:08