The New York-based hedge fund Millennium Management has required its employees to disclose information about cryptocurrency trading. According to Financial News, citing sources familiar with the matter.
Staff were reportedly instructed by Millennium Management’s leadership at the end of September.
One of the interviewees described the requirement as “a new change in the rules.” Another noted that the fund had asked staff to report deals involving digital assets for the past three years. The September internal memo was merely a reminder to submit the data to the compliance department, the source said.
Traders interviewed by the publication noted that many hedge fund managers are barred from personally buying and selling stocks belonging to their employers. In this context, Millennium Management’s requirement may be an attempt to mitigate conflicts of interest.
In May СoinDesk reported that the New York-based firm, Point72 Asset Management, and Matrix Capital Management are at different stages of launching cryptocurrency funds. Earlier, it became known about Millennium’s investments in Bitcoin via the Grayscale Bitcoin Trust.
“From a regulatory standpoint, the firm simply must have a way to manage conflicts of interest between itself, its clients and its employees,” said one of the FN interviewees.
Another source added that Millennium Management’s policy requires employees to disclose all personal assets, with certain “exceptions,” such as bank accounts.
Millennium Management is one of the largest asset managers in the United States. According to the сайту, AUM exceeds $57.4 billion, the firm employs more than 3,800 staff.
In June 2021 a Goldman Sachs survey showed that Bitcoin became the least attractive asset among hedge fund top executives and structures that hold only long positions.
In the same month, administrator Intertrust suggested that by 2026 the share of cryptocurrencies in hedge funds’ net assets will reach 7.2%.
As noted by Darren Jordan, BitGo’s regional managing director for Europe, the Middle East and Africa, there is corporations’ demand for regular Bitcoin purchases.
Subscribe to ForkLog news on Twitter!