A little known crypto focused asset manager has raised $100 million from just one investor for a new entity called NYDIG Digital Assets Fund II, LP.
The New York Digital Investment Group (NYDIG), came about in 2017 when founders of Stone Ridge Asset Management, which has some $10 billion in investable assets, were buying bitcoin at a significant rate.
So they launched their own solution for bitcoin and crypto investment, handling custody and all relevant aspects, with NYDIG raising some $50 million in October this year. Making it a partially owned subsidiary of Stone Ridge Asset Management.
“I view Bitcoin as a border-agnostic, uniting force for good,” Ross Stevens, founder of Stone Ridge Holdings Group (SRHG) and founder and Executive Chairman of NYDIG, said at the time before adding:
“From an investment perspective, we’ve long viewed Bitcoin as superior to cash. And now with unchecked – and unbacked – global paper money printing and real yields increasingly negative, SRHG’s more than 10,000 BTC are the principal component of our treasury reserve strategy.”
That purchase of 10,000 bitcoin by SRHG was also announced in October, worth at the time $100 million to form part of its treasury reserve strategy.
It has now doubled to nearly $200 million, and they’re not taking profits but doubling down with this new SEC filing this December.
It’s not disclosed why they’ve decided to form a new company or who this sole $100 million investor is, but NYDIG offers custody and trade execution for bitcoin, bitcoin cash, eth, XRP, and litecoin.
This new $100 million therefore is likely to go into crypto, probably primarily into bitcoin but also maybe some into eth.
So making this the latest institutional investor to join this space, catering to corporate treasuries, wealthy clients as well as banks and other institutions.
They also appear to be true believers in “the long-term growth of an open-source monetary system—in assets like bitcoin,” as Robert Gutmann, Stone Bridge’s co-founder, put it.