NYDIG Secures $190 Million for a Bitcoin Fund

The fund manager has become one of the largest institutional investors in Bitcoin.

The New York Digital Investments Group (NYDIG) has raised $190 million for one of its Bitcoin funds, the company revealed on its latest Form D filing with the US Securities and Exchange Commission.

Dubbed the NYDIG Institutional Bitcoin Fund LP, the fund has 24 unnamed investors and was initially registered with the regulator in 2018. Originally, the Bitcoin fund raised $31 million from 3 investors, and later in 2019 6 more investors joined to contribute $54 million.

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NYDIG grabbed headlines in May for closing another $140 million fund called the Bitcoin Yield Enhancement Fund.

The fund managers did not make it clear if the $190 million funds are new or the previous one was renamed, but if different, NYDIG with at least $330 million in the capital will become one of the largest institutional investors in Bitcoin.

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Betting big on Bitcoin

NYDIG also operates another Bitcoin fund called the NYDIG Bitcoin Strategy Fund. It is a portfolio fund in the Stone Ridge Trust VI and invests in CME Group’s cash-settled Bitcoin futures contracts. Though the currency size of the fund is unknown, it attempted to raise $25 million last December.

The fund manager did not furnish any details on the working of the fund in the regulatory filing or through other public channels.

NYDIG is a holder of the notorious BitLicense from the New York State Department of Financial Services (NYDFS), making it a regulated entity in the state. The fund is registered as a limited purpose trust charter.

Notably, Benjamin Lawsky, the former financial regulator who created the BitLicense in 2015, joined the fund manager last year, NYDIG received the tough state license 11 months after his joining.

Recently, 3iQ, Canadian crypto fund manager, completed a $10 million offering in its Bitcoin Fund, showing aggressive institutional interest in digital assets.

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