This collaboration is part of efforts to stand a better chance at securing funds and allocations from major players like pension funds.
Australian crypto hedge fund managers JellyC and Trovio Asset Management have made a daring move aimed at capturing the attention of institutional investors. According to a recent report by Bloomberg, the duo has formed a merger with Australia-based JellyC emerging as the majority shareholder of the new entity.
This collaboration is part of efforts to stand a better chance at securing funds and allocations from major players like pension funds, particularly in the Asia Pacific (APAC) region.
JellyC cofounder Michael Prendiville disclosed this in an interview, saying that scaling is the only way to reach big investors. He said:
“If we’re not at capacity, we won’t get the allocation.”
Prendiville remains positive about the combined operation. He believes that this collaboration now brings access to big investments such as Australian superannuation funds.
JellyC and Trovio Target Australia’s A$3.9 Trillion Pension Industry
One of the main goals of this merger is to tap into Australia’s A$3.9 trillion ($2.6 trillion) pensions industry. However, it might be worth noting that the pensions industry has been quite hesitant in matters that involved investing in digital assets.
Meanwhile, the cautious approach of the industry towards crypto-related investments would be understandable. More so, given the regulatory uncertainties that have remained over the years.
Prendiville, however, believes that even that is set to change as Australia’s crypto regulations become clearer.
The new entity formed by the merger has ambitious plans. It aims to increase its combined assets under management by 150% by mid-2026. That is, from current levels to around A$250 million.
According to Prendiville, this target is more than achievable. His confidence, he says, comes from the fact that the merger positions them better for growth and stability, which are key to attracting institutional investors.
Notably, Trovio’s plans for the merger might be a little different. Jon Deane, CEO of Trovio, has revealed that Trovio will eventually divest its shareholding in the merged business. However, he gave no specific timeline for when that would happen.
This new merger reflects what might be a growing trend among crypto hedge funds. Many similar firms have been treading the same path, looking to expand their operations to attract more traditional institutional investors.
For firms like JellyC and Trovio, reaching a larger scale is of utmost importance. More so, since it might help them gain the trust and capital of investors, many of whom are still extra careful about associating with the crypto market.
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