Some of the most prominent names in the hedge-fund industry are moving deeper into crypto.
Point72 Asset Management, owned by Steve Cohen, is looking to hire a head for cryptocurrency, while George Soros’ family has begun trading Bitcoin, according people familiar with the matter. Spokespeople from the firms declined comment.
Both of these moves were reported by TheStreet.com earlier. They come at a time when a growing number prominent hedge funds are starting to invest in digital assets. Millennium Management, a rival to Point72, has been actively involved in crypto-related exchange-traded funds and futures. Brevan Howard Asset Management (macro trader Paul Tudor Jones) have also started investing in crypto. Dan Loeb, a hedge fund manager, said that he was taking a deep dive into crypto in March.
Point72’s decision follows an announcement made to investors by the firm that it was looking at investing in the sector through either its flagship hedge fund, or its private investment unit. It was not immediately clear what the new crypto position would look like.
Point72 stated in a May letter to investors that it was exploring potential opportunities for blockchain technology and its disruptive and transformative capabilities. Bloomberg saw the letter. “We would be remiss if we ignored a crypto currency market now worth US$2 trillion.”
Steven ‘Steve’ (chairman and chief executive officer at SAC Captial Advisors LP) speaks during the Robin Hood Veterans Summit, New York, U.S.A, Monday, May 7, 2012.
Dedicated cryptocurrency firms claim they are having difficulty finding the right candidates for hundreds of jobs. There has been a frenzy of interest among digital currencies and other assets that has put those shops up against some of the biggest financial institutions in the world, including Goldman Sachs Group Inc. and Bank of New York Mellon Corp. DBS Group Holdings Ltd. offering trading and services.
The market value of all cryptocurrencies is now approximately US$1.4 trillion. CoinGecko says that although the space is volatile and suffered a sharp rout in May.
Dawn Fitzpatrick oversees Soros Fund Management and approved traders to start positioning in Bitcoin in the recent weeks, said the person. Bloomberg reported that the firm was planning to invest in cryptocurrency in 2018, but had not yet placed a wager. Fitzpatrick had at the time given Adam Fisher, head of macro-investing, permission to trade virtual coins. Fisher left the firm early in 2019.
Fitzpatrick stated that Bitcoin is interesting in a March interview with Erik Schatzker of Bloomberg Television. He also said that the company had made investments in crypto infrastructure such as asset managers, exchanges, and custodians.
Fitzpatrick stated that there is a real fear about debasing fiat currencies, which is driving demand for crypto. “Bitcoin, it’s not a currency. I believe it’s an asset that can be stored and transferred, with a finite supply.” She declined to confirm whether she had any Bitcoin.