Investment Giant With $2T AUM Plans Trading Crypto
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Oct. 20, 2021

Pacific Investment Management Company (Pimco), a global investment management firm focusing on active fixed income management, is looking at cryptocurrencies as part of its "trend-following strategies," Pimco CIO, Daniel Ivascyn, told CNBC in an interview. He also said the company will not add support for cryptocurrencies immediately as Pimco wants to take "baby steps in an area that is rapidly growing."

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"Now we are looking at potentially trading certain cryptocurrencies as part of our trend-following strategies or quant-oriented strategies, then doing more work on the fundamental side," Ivascyn said.

Grayscale to Convert Bitcoin Trust into ETF

Nonetheless, the Pimco CIO highlighted that some of the company's hedge fund portfolios are already trading securities tied to cryptocurrencies:

"We are trading from a relative value perspective. So we are not taking directional exposure, but we are looking to take advantage of mispricings between the cash product, popular trust that trades on the exchange, and then the futures."

Pimco's announcement follows bitcoin (EXANTE: Bitcoin) rapid growth as the cryptocurrency has recently updated its all-time high of $65,000. As of press time, bitcoin is trading at $66,371 with 101% return year to date.

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