Cantor Fitzgerald Introduces $2 Billion Bitcoin Funding Program

Cantor Fitzgerald LP is preparing to enter the Bitcoin financing arena, offering leverage to cryptocurrency investors.

The investment bank has disclosed intentions to invest $2 billion into this new venture, as stated in a recent press release from the company.

This initiative was announced by Cantor Chairman and CEO Howard Lutnick at a Bitcoin conference held in Nashville, Tennessee.

Lutnick Draws Parallels Between Bitcoin and Gold

In his address, Lutnick underscored the firm’s dedication to promoting global Bitcoin trading, comparing the cryptocurrency’s potential to that of gold.

“I believe Bitcoin, similar to gold, should be freely tradable across the globe, and as the largest wholesaler worldwide, we will do everything within our means to achieve that,” Lutnick stated.

“Bitcoin should be traded like gold everywhere in the world without exception and without limitation.”

Lutnick further noted that as the leading wholesaler globally, they will strive to “promote Bitcoin’s free trade.”

He also indicated that Cantor already possesses a significant amount of Bitcoin.

The new business initiative will partner with selected Bitcoin custodians, although specific partners and a timeline for launch were not revealed.

Lutnick pointed out that once the initial $2 billion is deployed, Cantor intends to augment its investment in additional $2 billion increments to support the business.

The news has been reported: $13.2B Cantor Fitzgerald is making a significant move into Bitcoin-backed lending.

Source: https://t.co/xjJH4b3RNY pic.twitter.com/A6dSkAlUEQ

— Sam Callahan (@samcallah) July 27, 2024

The conference also included Republican presidential candidate Donald Trump, who was anticipated to present a strategy for the US government to accumulate a substantial Bitcoin reserve, as noted by his rival, Robert F. Kennedy Jr.

This proposal, if validated, could become a pivotal element of Trump’s appeal to the cryptocurrency sector.

Alongside its new Bitcoin financing venture, Cantor acts as a custodian for Tether Holdings Ltd., the issuer of the USDT stablecoin, which has approximately $114 billion in circulation.

The firm has also secured significant funding for digital asset firms, including cryptocurrency miners Bitdeer, TeraWulf, Riot Platforms, and Cipher Mining.

Jersey City’s Pension Fund to Invest in Bitcoin ETFs

The municipal pension fund of Jersey City, New Jersey, is preparing to allocate a portion of the city’s pension assets to crypto ETFs.

The municipal pension fund, known as the Employees Retirement System of Jersey City, is currently working through regulatory requirements with the SEC to incorporate a segment of its assets into Bitcoin ETFs.

While specific details regarding the percentage of pension funds allocated to Bitcoin ETFs remain undisclosed, Mayor Fulop suggested that Jersey City’s strategy would reflect that of Wisconsin’s state pension fund, which committed a 2% allocation to Bitcoin ETFs earlier this year.

As reported, quantitative fund Kbit believes that greater returns are available within the digital asset sector itself as hedge funds revert to traditional strategies like the basis trade to take advantage of the recent rise in crypto ETFs.

“The larger opportunities, higher return opportunities are in the crypto native markets,” stated Ed Tolson, founder and CEO of Kbit, during a recent interview.

Tolson highlighted the significance of engaging with centralized crypto exchanges and trading various crypto instruments, including tokens, perpetual swaps, and derivatives.

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