What is the relationship between Coinbase, Bakkt and Paul Jones?

Ultimately, as US Securities and Exchange Commission (SEC) documents show, Coinbase and Bakkt are behind Paul Tudor Jones’ Bitcoin bets.

By the way, in May 2020, when billionaire Paul Tudor Jones bet 1% to 2% of his wealth on Bitcoin, it was not clear where he was headed. After all, his hedge fund had only started flirting with Bitcoin futures days before.

“The best strategy to maximize profits is to own the horse faster. If I am forced to forecast, my bet is that it will be Bitcoin.

But, over time, his $ 44.5 billion Tudor Investment Corporation has set the rails, securing custodial ties with institutional powerhouses Coinbase and Bakkt.

Coinbase and Bakkt are behind Paul Tudor Jones’ Bitcoin gambling

Indeed, according to the documents, Coinbase Custody Trust Company, Bakkt Trust Company and Tagomi Trading LLC, provide custody services to the Tudor Jones hedge fund.

To better understand, Tagomi Trading LLC, is the institutional brokerage subsidiary that Coinbase bought in May 2020.

That’s why Shan Aggarwal, Coinbase’s Head of Corporate Development said, “We are going to integrate the Tagomi platform into our suite of products. And, it will form the foundation for the future of our institutional trade business.

For now, Tudor Jones appears to be limiting direct exposure to cryptocurrencies to a small corner of its customers.

In fact, Tudor Family Fund II, was the only one of Tudor Investment Corporation’s eight hedge funds to disclose crypto custodians on the company’s annual Form ADV, filed on March 31.

Institutional service providers

Overall, Tudor Investment Corporation is not the first big-name asset manager to loudly promote its crypto bets.

Last November, UK-based Ruffer Investment used a similar strategy when it bought $ 745 million worth of BTC. The company says it expects further institutionalization and acceptance of cryptocurrency in the future.

By the way, Duncan MacInnes, Ruffer’s manager, said, “The economic environment for Bitcoin right now couldn’t be better.”

Coinbase gets the green light

Along the same lines, Coinbase announced that the United States Securities and Exchange Commission (SEC) confirmed that its registration statement related to its initial public offering (IPO) is effective.

As a consequence, the company announced its IPO in the United States. So, the operation will take place on April 14 and the company will be listed on the Nasdaq technology index.

In this regard, MicroStrategy CEO Michael Saylor said, “Congratulations to the entire Coinbase team.”

For many, the passage of Coinbase confirms that Bitcoin and cryptocurrencies will continue to set a trend in the world for years to come. What do you think? Let me know in the comment box.

I say goodbye with this phrase from Paul Tudor Jones: “At the end of the day, the most important thing is how good you are at risk control.”

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