Hedge-Fund Platforms Fear Bitcoin Is a Fad Like Tamagotchi

  • Platforms are turning down cryptocurrency funds as clients
  • Mirabella, Brooklands, Privium have all had meetings recently
Bitcoin: What’s Coming in the Year Ahead
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Bitcoin’s march toward respectability faces another hurdle as hedge-fund platforms reject the overtures of firms trading cryptocurrencies.

Brooklands Fund Management, Mirabella Advisers and Privium Fund Management -- which provide back-office functions and regulatory help for investment firms -- all say they’ve had discussions with bitcoin funds in recent months. So far, they’ve turned down requests to take them on as clients, citing a lack of understanding about the value store and concerns over whether it’s a legitimate asset or a bubble waiting to burst.