Billionaire Steve Cohen's Point72 is hunting for a crypto chief after saying it would be remiss to ignore digital assets
- Steve Cohen-led
Point72 Asset Managementis on the hunt for a cryptocurrency boss, Bloomberg reported.
- The $22 billion fund revealed to investors last month that it was interested in digital assets.
- Around 21% of traditional hedge funds are now investing in
cryptocurrencies, a study showed.
The move comes after Point72 informed investors in May that it was weighing up the prospects offered by digital assets.
"We are exploring opportunities around blockchain technology and its transformative and disruptive capabilities," the hedge fund said last month in a letter seen by Bloomberg. "We would be remiss to ignore a now $2 trillion
Point72, which manages about $22 billion, said its crypto-related bets would be made either through its flagship fund or its private investment unit, the Bloomberg report said.
The company's apparent sharpening interest in digital assets reflects that a number of big institutions are already making their bets. More than 20% of traditional hedge funds, representing $180 billion in assets under management, are now allocating an average of 3% of that money to digital investments, the Alternative Investment Management Association found in a May survey.
Legendary investor George Soros' fund is actively trading bitcoin, The Street reported Thursday. Paul Tudor Jones, founder of the Tudor Investment Corporation, and $14 billion fund Brevan Howard have also moved into the space. In April, Dan Loeb's Third Point revealed its crypto investments with Coinbase.
A majority of the funds already invested in digital assets intend to put more capital in by the end of 2021, the AIMA survey found.
"Diversification and exposure to a new value creation ecosystem are cited as drivers for investing in digital assets. This is unsurprising given that hedge funds tend to be early adopters, at the forefront of innovation whilst remaining committed to achieving the best performance possible," its CEO Jack Inglis said in a statement.
Closely followed by his legion of fans, Cohen himself has decades of experience on Wall Street. He founded two hedge funds, one of which, SAC Capital, was shut down in 2013 over insider trading. He is now CEO and chairman of Point72.
Representatives of Point72 declined to comment.
Read More: A digital-assets investing chief breaks down 10 reasons why the crypto bear market thesis is broken - and lists 10 cryptocurrencies that still have solid fundamentals despite falling by up to 70%
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