UK Pension Fund M&G Invests $20M in First British-Regulated Bitcoin Derivatives Exchange
M&G, the investment arm of a UK-based pension fund, has invested $20 million in Global Futures & Options Holdings (GFO-X), the country’s first regulated Bitcoin derivatives exchange.
M&G, the investment division of a prominent UK-based pension fund, has committed a substantial $20 million investment to Global Futures & Options Holdings (GFO-X), the inaugural regulated Bitcoin derivatives exchange in the United Kingdom. This strategic investment is a pivotal component of GFO-X’s ongoing Series B funding round, totaling $30 million. GFO-X’s primary focus will be on the clearance of Bitcoin index futures and options contracts.
This development signifies a noteworthy stride for traditional financial institutions seeking exposure to cryptocurrency derivative instruments. GFO-X aspires to emerge as a compliant and centrally cleared trading platform for crypto derivatives, operating under the regulatory oversight of the Financial Conduct Authority (FCA).
Jeremy Punnett, Portfolio Manager at M&G, emphasized that “the UK holds the potential to evolve into a global hub for digital asset technology and investment, positioning London as an ideal destination for GFO-X’s novel global trading venue.” This substantial investment empowers GFO-X to expand its operational footprint, capitalizing on a trend where investors are increasingly transitioning their trading activities from unregulated to regulated platforms.
The investment capital is derived from M&G’s Crossover strategy, specifically designed to support the rapid growth of private enterprises. The objective of this funding is to establish a prominent center for trading and clearing cryptocurrency derivatives while fostering innovation within the sector. In tandem with this investment, M&G will assume a position on the board of GFO-X.
Recent initiatives by the Bank of England (BOE) and the Financial Conduct Authority (FCA), including proposals for regulating stablecoins, underscore the UK’s commitment to positioning itself as a leading global hub for cryptocurrency activities.
