Some of the world's biggest hedge fund managers, from Alan Howard to Steve Cohen, are looking to profit from the latest crypto rally.
The cryptocurrency market is rapidly growing, and the world's largest hedge funds are increasingly interested in the emerging asset class.
Brevan Howard launched a dedicated digital assets division in September 2021. The hedge fund's bet on the crypto market paid off in 2023, with its digital asset strategy returning 44%, compared to a 2.1% loss for its flagship master fund, according to Bloomberg.
Founder Alan Howard is considering selling his stake in crypto companies Copper and Bitpanda and reinvesting the proceeds into Brevan Howard Digital amid strong returns in 2023.
Point72
Brevan Howard isn't the only hedge fund making a big push into digital assets. Cohen's Point72 has been beefing up its cryptocurrency team in recent years, hiring some of the most prominent names in the industry.
In June 2022, Point72 appointed Ellie Garam, a former portfolio manager at Two Sigma, as head of cryptocurrencies for its systematic investment business, Cubist Systematic Strategies. In November 2022, Michael Ashby, chief operating officer of Meraki Global Advisors, joined Cohen's hedge fund as head of digital asset strategy implementation.
Point72 added Robinhood's Lionel Scrum as a digital assets associate in January 2023.
Steve Cohen has been investing in crypto companies through Point72's venture capital arm since 2021. The company made its first crypto bet in August 2021 by investing in crypto analytics platform Messari. Since then, Point72 Ventures has invested in several cryptocurrency startups, including digital asset trading platforms 24 Exchange and D2X.
tudor investment
Hedge fund billionaire Paul Tudor Jones, founder and chief investment officer of Tudor Investments, is a big supporter of Bitcoin. He said in a June 2021 interview that investing in cryptocurrencies could be a good hedge against rising inflation. CNBC.
In February 2021, Jones backed North Island Ventures' $72 million VC fund to invest in cryptocurrency startups.
Tradfi Cryptocurrency Moments
While traditional financial companies are staying put in cryptocurrencies, they are becoming more bullish on Bitcoin and other digital assets. With the approval of spot Bitcoin ETFs in the US, major financial institutions are becoming more active in trading crypto products, industry leaders say.
Michael Walsh, executive chairman for Ireland at Standard Chartered's crypto firm Zodia Markets, said: “Long-established tradfi companies are losing ground to new entrants set up to serve the crypto-native community. The community will continue to operate on more mutual trust.” .
Standard Chartered has raised its year-end Bitcoin price forecast to $150,000.
Cryptocurrency adoption
Standard Chartered-backed cryptocurrency custody firm Zodia Custody has hired AquaNow's head of business development for Asia Pacific, Cal Chan, as chief executive of its Hong Kong operations. Cryptocurrency exchange Coinbase has hired Goldman Sachs associate Connor Sheeks as a U.S. credit risk analyst.
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To contact the author of this article with feedback or news, email Bilal Jafar
