The investment arm of UK-based pension fund M&G has invested $20 million in Global Futures & Options Holdings (GFO-X), the country’s first regulated Bitcoin derivatives exchange. This investment is part of a $30 million Series B funding round for GFO-X, which aims to become a Financial Conduct Authority (FCA) regulated and centrally-cleared trading platform for crypto derivatives.
GFO-X will initially offer clearing of Bitcoin index futures and options contracts, providing traditional finance institutions with exposure to cryptocurrency derivatives investment products. The funding from M&G’s Crossover strategy, which draws from the $138 billion Prudential With Profits Fund, aims to create a hub for trading and clearing cryptocurrency derivatives and foster innovation in the sector.
M&G’s investment in GFO-X also includes a seat on the board of the derivatives exchange. Jeremy Punnett, M&G portfolio manager, highlighted the potential for the UK and London to become a leading destination for cryptocurrency technology and investment. However, he noted that the lack of regulated trading venues is hindering the growth of the digital currency trading market.
GFO-X CEO Arnab Sen believes that evolving regulations in the UK and Europe will help cryptocurrencies become part of mainstream finance offerings. He emphasized the importance of collaboration between traditional market participants and modern innovators in building a regulated financial market ecosystem for digital assets.
The Financial Conduct Authority (FCA) has recently issued additional guidelines to industry service providers to ensure compliance with UK crypto asset promotion rules. This move comes as investors continue to show interest in cryptocurrencies, and some operators have chosen to leave the country while others strive to meet strict advertising requirements in the UK.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Europe |
| Countries | 🇬🇧 |
| Sentiment | positive |
| Relevance Score | 1 |
| People | Jeremy Punnett, Arnab Sen |
| Companies | London Stock Exchange, Global Futures & Options Holdings (GFO-X), Prudential With Profits Fund, Financial Conduct Authority (FCA), M&G |
| Currencies | Bitcoin |
| Securities | None |
