Crypto Three Things (11/21)
Nov 21, 2022
“If you tell the truth, you don’t have to remember anything.”– Mark Twain
1) FTX Owes $3.1B to Largest Creditors: FTX’s top 50 creditors are each due more than $20M, with two of them owed more than $200M, bankruptcy proceedings showed this weekend. Moreover, the firm’s new chief, John J. Ray, announced they are already working with an investment bank to help find new owners of some of FTX’s subsidiaries which have “solvent balance sheets, responsible management, and valuable franchises.” FTX is slated to appear at an initial bankruptcy court hearing on Tuesday.
Titan’s Takeaway: It’s moderately uplifting to discover that some of FTX is still deemed viable for sale. However, the main element in the scheme needs a bailout if unsecured customers are ever to see their funds again.
2) Man Group Prepares Crypto Hedge Fund: The world’s largest listed hedge fund firm, Man Group, is pivoting to the crypto space with its first digital-asset hedge fund. Several months into its preparation, the London-based group has already designed its dedicated cryptocurrency strategy, while the actual start of the fund is anticipated toward the end of the year.
Titan’s Takeaway: While the size of the fund is not yet revealed, Man Group handles $138B in assets – a figure that would imply the crypto-focused investments will be backed by a solid capital allocation. But since we’re charting the largest crypto storm in years – you can never be too sure.
3) Bill Ackman Says “Crypto is Here to Stay”: Hedge fund manager and activist investor Bill Ackman struck an optimistic tone about digital assets, saying he shifted his stance from a skeptic to a proponent of the industry and expects tokens to build intrinsic value over time. “I think crypto is here to stay, and with proper oversight and regulation, it has the potential to greatly benefit society and grow the global economy,” Ackman said on Twitter.
Titan’s Takeaway: It may be a bit murky to see the intrinsic value of digital assets now as we slide deeper into a scandal-driven bear market. Nevertheless, it’s encouraging to see Ackman, who holds about 2% of his portfolio in crypto, paint a bright picture ahead.
Cash Management
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