NYDIG raised $150 million to launch two cryptocurrency investment funds

New York Digital Investments Group (NYDIG) raised $150 million to launch two new cryptocurrency funds. The money came from three institutional investors.
According to two filings sent to the US Securities and Exchange Commission (SEC), the NYDIG Digital Assets Fund I raised $50 million from institutional investors, and the NYDIG Digital Assets Fund II raised $100 million. A source familiar with the situation confirmed that Fund I invests exclusively in Bitcoin. This is NYDIG’s latest offering for a growing number of institutional clients in BTC, he said.

It is not yet clear whether Fund II is invested exclusively in the largest cryptocurrency. According to the company, two unnamed investors invested $50 million in Fund I, and only one major investor invested all of $100 million in Fund II.

NYDIG separated from Stone Ridge Asset Management worth $10 billion in 2017 with a mission to draw the attention of institutional investors to cryptocurrencies. In November 2018, the New York Department of Financial Services (NYDFS) issued BitLicense to NYDIG Execution. In addition, last December, NYDIG received SEC approval to launch a fund to work with Bitcoin futures.

Two new cryptocurrency funds continue the recent trend of NYDIG to register its cryptocurrency offers as investment instruments according to Rule 506 (c). In essence, this means that NYDIG can advertise funds to a wider audience.

Institutional investors are increasingly interested in cryptocurrencies. Recently, Canadian investment company Cypherpunk Holdings sold ETH and XMR reserves and invested the proceeds in Bitcoin. The company’s investment in BTC has grown by 279% since the end of Q2 this year. In addition, Guggenheim Partners filed an application with the SEC for more than $500 million from the Macro Opportunities fund for investments in the Grayscale Bitcoin Trust.