As the price of bitcoins approached US$ 67,000, the cryptoasset market caught the attention of Daniel Ivascyn, CIO of Pimco, known as the “fixed income titan”.
Acknowledged as the most prominent government bond manager globally, Pimco has signaled that it may consider cryptoasset investments. With more than US$ 2.2 trillion under custody, the company is considering investing in the crypto market.
According to an interview with CNBC, Daniel Ivascyn commented that the manager plans to trade certain cryptocurrencies without revealing when this investment will start. The fund manager should follow the trends and diversification strategies involving cryptoassets.
“Now we’re 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.
He also said that Pimco’s cryptoasset investment would be a gradual process. Furthermore, the manager said that it will be necessary to speak to investors about the process of exposure to digital currencies, which will be conducted in “baby steps”.
“So this will be a gradual process where we spent a lot of time on the internal diligence side speaking to investors. And we’ll take baby steps in an area that’s rapidly growing.”, he added.
Talking about some investment strategies in the crypto market, Daniel Ivascyn signaled that Pimco is likely to be active in the futures contract market.
“We’re trading from a relative value perspective. So we’re not taking directional exposure, but we’re looking to take advantage of mispricings between the cash product and futures contracts”.
