IlluMyFi

Ikigai Asset Management,a US-based hedge fund, has reportedly navigated the aftermath of the FTX bankruptcy. Also Read: FTX Claim Prices Almost Double Amid Astonishing Revival Ikigai's Chief Investment Officer, Travis Kling, announced in a post on X that the fund's $65 million claim in the FTX bankruptcy has been sold. Kling said, "We got a price we were happy with and a price that was much, much higher than we were expecting just six months ago." The move not only brought a higher-than-expected price but kept the investment business afloat. Bahamas-based crypto exchange FTX filed for bankruptcy in November 2022. Its implosion plummeted the crypto market's value from $3 trillion in 2021 to below $1 trillion. Despite the defunct exchange aiming to conclude its bankruptcy proceedings a year after its collapse, the financial aftermath of billions lost has led to the closure of various businesses. Contrarily, the strategic sale has enabled Ikigai to offer redemption to its investors. Kling noted, "I was (and still am) very interested in FTX 2.0. But the Debtors have fumbled that process so badly, and progress has been so slow, that it didn't make sense for us to hang around in the claim any longer waiting for something to maybe happen with 2.0." Many of the investors are reportedly keeping their capital in the fund. Meanwhile, Kling confirmed that Ikigai reopened subscriptions for existing investors for the first time after the bankruptcy. Kling notes that there are structural changes to the business with the influx of new capital. In 2022, Kling admitted responsibility and remorse for endorsing FTX. However, the subsequent loss of investor money marked a humbling period for the firm as Ikigai continued trading. That said, FTX is also reportedly nearing the end of its bankruptcy process with a settlement for creditors. Additionally, earlier this week, FTX debtors and their Bahamian subsidiary, FTX Digital Markets, agreed to synchronize their bankruptcy proceedings and pool their assets. FTX Trading Ltd., along with its affiliated debtors, also recently announced plans to settle with Samuel Bankman-Fried, Nishad Singh, and Gary Wang in bankruptcy court. The settlement is specifically about a case related to buying Embed Financial Technologies. FTX will get back all the value and assets from this acquisition that the three individuals received.

Sentiment

Bearish/Bullish

13.01.24 07:54

by coingape.com

Vanguard May Reconsider Bitcoin Stance, Analyst Suggests

Bloomberg analyst predicts Vanguard may shift its anti-Bitcoin stance amid market changes and the need for diverse portfolios. Vanguard, a renowned investment firm, is speculated to shift its longstanding anti-Bitcoin stance, according to insights from Bloomberg's senior analyst Eric Balchunas. Despite Vanguard's current direction, Balchunas hints at possibly reevaluating this policy in the foreseeable future, aligning with the firm's expanding advisory services and the need for diverse investment portfolios. Vanguard's current approach towards Bitcoin and cryptocurrencies remains firmly resistant. The firm has recently made headlines by restricting customer access to the newly introduced spot Bitcoin Exchange-Traded Funds (ETFs). This decision aligns with their past actions, notably removing Bitcoin futures ETFs from their platform. According to a Vanguard spokesperson, this move aligns with the company's core values, focusing on products and services catering to long-term investors' needs. This stance, however, has not gone without consequence. Recent reports indicate that some Vanguard customers have started transferring their funds to other firms, seeking investment opportunities in the burgeoning cryptocurrency market. Despite these developments, Vanguard continues to uphold its cautious approach towards digital assets, reflecting the cautious perspective of its founder, Jack Bogle, who in 2017 labeled Bitcoin as a "plague." While Vanguard maintains its conservative stance, Eric Balchunas of Bloomberg foresees a gradual change in the company's philosophy. Balchunas notes that the growing emphasis on wealth growth and the necessity for diversified investments could nudge Vanguard towards reconsidering alternative asset classes like Bitcoin and other cryptocurrencies. This shift, he suggests, would be a strategic move to broaden their advisory business and cater to an evolving investment landscape. Balchunas's perspective is noteworthy, given the increasing institutional interest in cryptocurrencies. This trend is seen in contrast to Vanguard's current trajectory, but it highlights the dynamic nature of investment strategies in response to market demands and opportunities. Intriguingly, Vanguard's investment portfolio presents a contrasting picture. Despite its skepticism towards cryptocurrencies, the firm has significantly invested in MicroStrategy shares. MicroStrategy, known for its substantial Bitcoin holdings, is a key crypto player. As of September 2023, Vanguard holds over 1 million shares in MicroStrategy, valued at approximately $547 million, making it the second-largest institutional shareholder with an 8.24% ownership share. This investment is particularly notable given MicroStrategy's status as the leading public holder of Bitcoin, with an estimated 190,000 BTC valued near $6 billion. Vanguard's substantial stake in a company deeply entrenched in cryptocurrency raises questions about its investment strategy and potential openness to digital assets.