JellyC and Trovio Merge to Attract Pension Fund Investments

Australian crypto hedge fund manager JellyC has merged with Singaporean Trovio Asset Management in a strategic move to secure larger investments, particularly from pension funds.

A Bloomberg report from October 23 reveals that JellyC will hold the majority of shares in the new entity following the merger. Trovio’s CEO, Jon Deane, noted that the firm plans to eventually divest its stake in the combined business, although no specific timeline has been provided.

JellyC co-founder Michael Prendiville stated that the goal of the merger is to boost the combined assets of both firms by 150%, aiming for a total of AUD 250 million (approximately USD 166.5 million). He emphasized that the focus will be on attracting large investors in the Asia Pacific region, especially Australian pension funds. Prendiville remarked, “If we’re not at capacity, we won’t get the allocation.”

Currently, Australia has yet to allocate its pension funds to digital assets, but Prendiville believes this will change as the country prepares to introduce crypto regulations.

In May 2024, Coinbase announced plans to launch a service providing crypto investment products aimed at portfolios representing about a quarter of Australia’s AUD 2.5 trillion pension system.

In contrast, other countries like Japan and South Korea have begun to allocate pension funds to crypto-related investments. South Korea’s National Pension Service, managing nearly $800 billion in assets, recently acquired 24,500 shares of MicroStrategy for $33.75 million. MicroStrategy is the largest corporate holder of Bitcoin, with over 252,000 BTC in its reserves.

Japan’s Government Pension Investment Fund, the largest pension fund globally, has expressed interest in incorporating Bitcoin and other assets, such as farmlands, forests, and gold, into its portfolio.

Additionally, in July 2024, the State of Michigan Retirement System invested approximately $6.6 million in ARK 21Shares’ ARKB spot Bitcoin exchange-traded fund.