The New York Digital Investment Group (NYDIG) today announced in a SEC filing that it has closed a $ 190 million Bitcoin fund. The NYDIG Institutional Bitcoin Fund LP reports that it has 24 unnamed investors and is exempt from Regulation D, Rule 506 (b), of the 2013 Safe Harbor protection provisions.
Another NYDIG investment called Bitcoin Strategy Fund was advised by Stone Ridge Asset Management LLC, a $ 15 billion consultant whose regulatory chief, Ben Lawsky, granted the BitDicense, granted to NYDIG in November 2018, less than a year ago had created after his hiring. Robert Gutmann, co-founder of Stone Ridge, is listed in a 2018 statement from the New York Department of Financial Services as CEO of NYDIG Execution LLC.
While details of the new fund are a mystery, it's remarkable for another reason. Last month, NYDIG announced that it had closed another $ 140 million fund of the same name. If the fund, known as the NYDIG Bitcoin Yield Enhancement Fund LP, is actually another financial instrument, NYDIG has tacitly developed into one of the largest institutional Bitcoin investors in the U.S., with a total volume of $ 330 million in Bitcoin between those two funds. A representative from NYDIG declined to comment.
The matter is made even more complicated by changing the name of the updated NYDIG Institutional Bitcoin Fund LP, previously referred to as NYDIG Institutional Digital Asset Fund LP. While we couldn't confirm that the $ 190 million LP updated today by the NYDIG Institutional Bitcoin Fund and the $ 140 million LP closed by NYDIG Bitcoin Yield Enhancement Fund last month are actually different, others Evidence speaks for it.
The institutional Bitcoin Fund made its first sale on October 26, 2018, according to today's records, and the Bitcoin Yield Enhancement Fund only started selling one week before its closure. A third fund for Bitcoin futures, the Bitcoin Strategy Fund, is currently listed on the Stone Ridge website under the ticker symbol BTCNX.
In any case, the presence of a new main player in institutional investment in Bitcoin spaces is remarkable. So far, institutional investment in cryptocurrency has been largely dominated by Barry Silberts Grayscale, which has $ 4.0 billion in assets under management. Another new player, 3iQ, announces a smaller but still significant $ 48 million exchange-traded product listed on the Toronto Stock Exchange.
publisher's Note: This story has been updated to show that NYDIG received its BitLicense after Lawsky was hired.