Stone Ridge and Bitcoin

Stone Ridge Asset Management has confirmed that it has 10,000 Bitcoins in custody, which at the current price is equivalent to $115 million.

Stone Ridge Asset Management is a company that sells and holds funds for institutional investors in the United States.

The news, revealed by Forbes, confirms an ongoing trend with large investors betting on Bitcoin. This is the case of Fidelity, Microstrategy, Square, all companies that recently bought large amounts of Bitcoin.

According to Forbes, Stone Ridge began looking with interest at Bitcoin when it realized that both its staff and some of its clients were investing in the asset. The company realized that its clients were asking for more.

That’s why in 2017 it created New York Digital Investment Group (NYDIG) which initially raised 50 million investments. Recently, it not only announced that it has doubled with an additional 50 million, but also announced the presence of the 10,000 Bitcoin fund of which it is the custodian.

This fund is in addition to the others held by the company, which has assets totalling $1 billion. Amongst the assets that have been spent, there are also other cryptocurrency assets, including XRP, Litecoin and Bitcoin Cash.

Curiously, another exponent of the crypto world, Chris Larsen of Ripple, also admitted that he entrusted Stone Ridge with one of his XRP portfolios.

The crypto world enthusiastically welcomed the news of Stone Ridge’s Bitcoin Fund. For Anthony Pompliano, like so many other commentators, this shows that today it is a wise choice to diversify your investments, and include Bitcoin:

Microstrategy’s Michael Saylor also wanted to comment, arguing that with the injection of trillions of dollars into the market, which are moving towards Bitcoin, there will be a need for companies like NYDIG.

Resilient Bitcoin

The choice of Stone Ridge is understandable: Bitcoin is proving resilient to the market. The Coronavirus crisis that has sunk the financial markets has also hit Bitcoin hard. But BTC has been able to recover, and today is permanently above $10,000. In fact, from March 13, 2020 to date, it has practically tripled its value, from $3,900 to almost $12,000 today.

Perhaps it is precisely the low volatility of the last period, together with the stability of support levels, that are convincing institutional investors that Bitcoin is a reliable asset.

In any case, the news of Stone Ridge at the moment has not particularly shaken Bitcoin, which today is slightly below par, with a loss of 0.3% and a price of $11,400.