The investment department of UK-based pension fund M&G has announced an investment of $20 million in the country’s first approved Bitcoin futures exchange, Global Futures & Options Holdings (GFO-X). The announcement made by M&G and GFO-X discussed the details of the investment, which forms part of the $30 million Series B financing round for the futures exchange. The platform will initially offer its users the swap of Bitcoin index futures and options contracts.
How Will the Process Continue?
With this step, a platform will be provided for traditional financial institutions to turn to various cryptocurrency futures investment products. GFO-X aims to be a trade platform that is regulated by the Financial Conduct Authority (FCA) for crypto asset services and is defined centrally.
The investment capital stems from the Crossover strategy provided by the Series B financing round obtained from M&G’s $138 billion Prudential With Profits Fund. The Crossover strategy is a method aimed at providing patient growth capital to rapidly growing private companies.
The financing aims to establish a hub for the trade and swap of cryptocurrency assets in the futures market and to encourage innovation in the sector. As part of the investment, M&G will join the GFO-X board of directors.
Noteworthy Statements About the Investment
In a statement made by M&G portfolio manager Jeremy Punnett, he underlined the potential for the United Kingdom and London to become a leading place for cryptocurrency technology and investment, and made the following remarks:
“The lack of regulated trading spaces significantly hinders the growth of the cryptocurrency market.”
GFO-X CEO Arnab Sen added to his words that evolving legal regulations in the United Kingdom and Europe will help cryptocurrency assets enter mainstream financial offerings. However, this possibility depends on the integration of traditional market structures to address the perceived risks associated with the emerging asset class. Sen made the following remarks on the subject:
“Creating a regulated financial market ecosystem is complex, time-consuming, and expensive, and the dangers of resorting to shortcuts are now clear to everyone. The long-term viability of crypto assets and the digitization of real tangible assets require careful collaboration between traditional market participants and modern innovators.”
