AQR which is a top hedge fund has announced that it will start looking for ways how to include a nascent technology into its platforms. This will be a big win for blockchain technology especially in the banking and finance. AQR is planning to use blockchain to ensure that its internal systems are safe. The blockchain is good because it allows security without so many muscles, unlike the traditional methods.
According to information from the co-founder of AQR David Kabiller: “How long Blockchain technology takes to be there and what becomes the standard is not clear. However, there is a big entrenched infrastructure laid down. There is a big potential for efficiencies that can be obtained from blockchain.”
Many businesses are using Blockchain technology to secure their information. This is because information cannot be accessed by unauthorized persons. More to that Blockchain fastens the transactions time, therefore, saving investors time. This has led to its popularity among institutions.
Hedge funds Companies
Embracing both cryptocurrency and Blockchain technology has been highly adopted by hedge funds especially among institutional investors. Since their main aim is to increase profitability, they have been forced to look for new investment fields which they feel are more efficient. According to reports more than 120 new hedge funds for cryptocurrencies are now open.
As at last week, a UK-based Man Group hedge fund announced that they were starting to trade in Bitcoin. The move was fueled by CMEs announcement that they would regulate Bitcoin futures markets. The market opens today 20th November.
After the Bitcoin futures are regulated, more businesses are expected to start Bitcoin trading. People are afraid to pump huge amounts of money in a platform that is unstable. With the market controlled people would be sure that the market is not very elastic making it safer to invest in.