Fortress Investment Group
The parent company of Fortress Investment Group, based in New York City, has recently announced that it is launching a bitcoin investment fund. This is the first instance of any Wall Street firm making such an announcement. As reported by Coindesk, while Fortress Investment Group did not make it clear how much was to be invested in this particular fund, the company stated that it would operate like any other hedge fund. It will be registered with the U.S Securities and Exchange Commission (SEC), which will let up to 99 investors participate in this new prospect. This comes as good news for fans of cryptocurrencies worldwide because many financial institutions have shown their unwillingness to invest or even acknowledge digital currencies as valid forms of investment. However, the company’s from New York bitcoin fund will not be used as currency for transactions but rather as a source of potential profit. Fortress Investment Group believes that digital currencies such as Bitcoin and Ethereum will only gain momentum in the next few years and might just become an industry standard by 2030.
On the other hand, financial analysts have looked unfavorably upon this announcement and believe that it is just a publicity stunt for Fortress Investment Group to gain more exposure with no intention of using their investment funds in digital currencies. Some critics point out that they would fail even if they were interested in launching such a venture because they lack experience or know-how about cryptocurrency trading. A representative from Fortress Investment Group responded by claiming that he is well aware of the concerns about their investment fund and is ready to address any queries that potential investors might have and more
It will be interesting to see how this new venture develops over the next few months. If successful, it could bring digital currency into greater focus in the world of finances and may change how people think about money. Only time will tell whether or not Fortress Investment Group’s bitcoin fund becomes more than a publicity stunt.