M&G Investments Invests $20M in UK Crypto Derivatives Platform GFO-X

M&G Investments, the asset management division of pension giant M&G Plc, invests $20 million in UK-based cryptocurrency derivatives trading platform GFO-X during its series B funding round. This move signals a positive development in restoring institutional trust in digital assets following the collapse of FTX last year. The investment is part of M&G's Crossover strategy for the £129 billion Prudential With-Profits Fund.

GFO-X, in a strategic relationship with LCH SA, majority-owned by the London Stock Exchange Group, plans to launch its clearing service, DigitalAssetClear, for Bitcoin index futures and options contracts by the end of 2023. M&G's investment hints at a potential shift in institutional attitudes toward the infrastructure supporting cryptoassets, especially after the collapse of FTX, which led to asset write-downs for traditional asset managers.

The collaboration between GFO-X and LCH SA is anticipated to launch by the first quarter of 2024, pending regulatory certification for LCH DigitalAssetClear. The investment by M&G reflects a changing sentiment among institutional investors and their renewed interest in crypto-related ventures.

Traditional asset managers, who faced losses due to FTX's collapse, might find M&G's investment in GFO-X indicative of a more positive outlook on crypto infrastructure. The move reflects a potential resurgence in institutional trust following the challenges witnessed in the crypto industry over the past year.