Bitcoin Fund: Cantor Fitzgerald LP plans to enter the Bitcoin lending market to give cryptocurrency investors more leverage. According to a recent press statement from the corporation, an investment bank has stated its intention to invest $2 billion in this new venture. Cantor Chairman and CEO Howard Lutnick announced the project during a Bitcoin conference in Nashville, Tennessee.
Lutnick Compares Bitcoin to Gold
Speaking on the cryptocurrency’s potential, Lutnick compared it to gold and stressed the firm’s dedication to enabling worldwide Bitcoin exchange. Because his company is the biggest distributor in the world, Lutnick promised to do all it takes to ensure that Bitcoin and gold may trade freely worldwide. “Bitcoin should trade worldwide at the same rate as gold, without exception or restriction.”
According to Lutnick, Cantor will go to all lengths to “support Bitcoin’s free trade” because it is the biggest wholesaler in the world. He added that Cantor already has a large amount of Bitcoin. Cantor’s new venture will team up with chosen Bitcoin storage providers; however, details regarding the partners and the debut date remain undisclosed.
Lutnick said that once the first $2 billion is spent, Cantor intends to increase its allocation in $2 billion increments to keep the company running. $13.2 billion in big-time Bitcoin-backed lending is happening at Cantor Fitzgerald. Sam Callahan (@samcallah) tweeted about it on X.
Republican presidential contender Donald Trump was also present at the conference. According to his opponent, Robert F. Kennedy Jr., he was supposed to present a strategy for the US government to accumulate a sizable Bitcoin reserve. If approved, this plan might become an important part of Trump’s pitch to the cryptocurrency market.
Tether Holdings Ltd. issues the USDT stablecoin, which has around $114 billion in circulation. Cantor also acts as a custodian for this company and has a new Bitcoin lending business. The firm has also provided major funding to Bitdeer, TeraWulf, Cipher Mining, Riot Platforms, and other digital asset firms.
Jersey City’s Pension Fund to Invest in Bitcoin ETFs
It is planned that the municipal pension plan of Jersey City, New Jersey, will make investments in exchange-traded funds (ETFs) that are based on bitcoin. A public pension fund known as the Employees Retirement System of Jersey City is navigating the laws set forth by the Securities and Exchange Commission (SEC) to diversify part of its holdings into Bitcoin exchange-traded funds (ETFs).
Earlier this year, the state pension system in Wisconsin committed 2% of its assets to Bitcoin exchange-traded funds (ETFs). Mayor Fulop has indicated that Jersey City’s policy will be similar to that of Wisconsin’s state pension system, but no specifics about the percentage allocation have been published.
Although hedge funds are applying tried-and-true strategies such as the basis trade to capitalize on the current surge in cryptocurrency exchange-traded funds (ETFs), quantitative fund Kbit insists that the digital asset business provides superior returns.
Crypto native markets provide “the larger opportunities, higher return opportunities,” remarked Kbit’s founder and CEO Ed Tolson in a recent interview. According to Tolson, trading a variety of crypto assets like tokens, perpetual swaps, and derivatives on centralized crypto exchanges is crucial.
