Institutional Bitcoin Shop NYDIG Raises $150M for Twin Crypto Funds

New York Digital Investments Group raised $150 million for two new funds to invest in cryptocurrencies, according to SEC filings.

Dec 2, 2020 at 5:01 a.m. UTC
Updated Sep 14, 2021 at 10:37 a.m. UTC

New York Digital Investments Group (NYDIG) raised $150 million for two new funds to invest in cryptocurrencies, a move that underscores the one-stop crypto shop's skyrocketing clout on the institutional bitcoin scene.

As revealed in two U.S. Securities and Exchange Commission filings, NYDIG Digital Assets Fund I raised $50 million from institutional investors while NYDIG Digital Assets Fund II raised $100 million.

A source familiar with the matter confirmed to CoinDesk that Fund I invests entirely in bitcoin. The source said it is NYDIG's latest offering for a growing lineup of institutional clients going long on BTC.

It was not immediately clear whether Fund II also invests solely in the market-leading cryptocurrency.

But more intriguing than the size of the two new NYDIG offerings are the identity of the whales who bought in. Just two unnamed investors appear to have participated in NYDIG's $50 million bitcoin fund, while it seems its larger brother got all its cash from just one.

The funds capture the extent to which deep-pocketed players are powering the 2020 bull run. Corporations making the crypto their treasury reserve, storied investors pumping their bags on CNBC and institutions piling in have combined to push BTC to new all-time highs.

That crypto-forward institutional investors would flock to NYDIG should be no surprise to those familiar with the space. NYDIG was spun out of $10 billion Stone Ridge Asset Management in 2017 with a mission to court institutional cryptocurrency newcomers. It quickly hired BitLicense architect Benjamin Lawsky and secured $50 million in funding to build out the team.

NYDIG raised an additional $50 million in growth equity in October. It now offers custody, execution, investment and prime brokerage services to hedge funds, pensions, banks and other high-dollar clients.

The two funds continue NYDIG's recent trend of registering its crypto offerings as Rule 506(c) investment vehicles. Essentially, that means NYDIG can advertise the funds to a wider audience.

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
First Mover Asia: Terra's Difficult Post-Collapse Path: VCs Backing Away, Regulators Jumping on Stablecoins

Some investors see salvageable pieces in the rubble while others are bemoaning their involvement and want to forget the protocol ever existed; bitcoin edges up in weekend trading.

Some investors see salvageable pieces in the rubble while others are bemoaning their involvement and want to forget the protocol ever existed; bitcoin edges up in weekend trading.

CoinDesk - Unknown
2
CoinDesk - Unknown
China Can’t Seem to Stop Bitcoin Mining

Reported hashrate fell to zero for two months in China last year, but it has since returned rather abruptly.

Reported hashrate fell to zero for two months in China last year, but it has since returned rather abruptly.

CoinDesk - Unknown
3
CoinDesk - Unknown
Could Local Digital Currencies Improve Communities?

That's the argument of the president of the RadicalxChange Foundation.

That's the argument of the president of the RadicalxChange Foundation.

CoinDesk - Unknown
4
CoinDesk - Unknown
After the Terra Meltdown: What's Next for Stablecoins?

The largest token collapse in crypto history. So let Luna die.

The largest token collapse in crypto history. So let Luna die.

CoinDesk - Unknown