Crypto enthusiasts have taken to begging the gods to turn things around in the current bear market. And this time, it may have worked. Having scooped an investment made by Steven Cohen (of fiat hedge fund fame, who famously outwitted several levels of the US government as they pursued him for insider trading and securities fraud – yet ultimately were unsuccessful) into a crypto hedge fund.
“The investment was made through his Cohen Private Ventures, said the person, who asked not to be named because the information is private. The hedge fund, Autonomous Partners, was started last year by Arianna Simpson, an early advocate of cryptocurrencies. It has also secured investments from Union Square Ventures, Coinbase Inc. Chief Executive Officer Brian Armstrong and Craft Ventures Co-Founder David Sacks, Simpson said in an interview Thursday.”
As you can see the crypto hedge fund itself is well respected amongst some of cryptos most elite investors and it seems that Cohen may be attempting to BTFD with this particular bid. That would be quite befitting his style over the years – a style that has made investors in his funds’ outsized returns, no matter the means by which they came.
Just as important as the investment is from a headline standpoint, even more important is the small detail that this is Cohen’s personal funds that are being allocated:
“Cohen Private Ventures invests in private equity and other longer-term investments on behalf of Cohen, who runs Point72 Asset Management. A representative for the firm declined to comment.”
In other words, this isn’t some sort of committee decision executed after quarterly allocations were made within Cohen’s organization. This was Cohen making a personal commitment to the crypto space and attempting to do it at just the right time so as to maximize his personal returns.
As we’ve covered here over the past six months the crypto hedge fund space continues to explode. New funds are opened daily and the raw numbers of crypto hedge funds are approaching 300 at this point. And those are the ‘registered’ funds – there is probably double that number amongst the OTC market across Asia, Russia, and other parts of the globe.
And then there is the case of Marc Lasry.
According to Lasry, Bitcoin is poised to see an increase in utility in the coming years as more people warm up to the emerging asset class. Speaking to CNBC, the Avenue Capital Group chief said: “As it gets more into the mainstream, and as more markets end up allowing it to trade where it’s freely tradable, to me that’s more of the bet.”
Another billionaire who is bullish on Bitcoin. Bill Miller.
n a recent Bloomberg interview, the self-proclaimed ‘Bitcoin observer’ revealed that he is a Bitcoin investor both personally and as part of a partnership portfolio. He recognized the nascent nature of the market, declaring that no one knows how the asset will end up. Regarding his views of the asset itself, Miller said:
“I think that it’s an interesting technological experiment. Every day that it doesn’t blow up or get regulated to zero, what’s going to happen is that more money flows into the ecosystem.”
Miller considers Bitcoin to be a ‘non-correlated’ asset that holds superior store of value qualities when compared to gold. High praise for sure.
These well-known billionaires follow other names like Novogratz, Lubin, and other crypto billionaires who are all-in on the development of the crypto ecosystem. When added to the institutional adoption and architecture set to explode onto the scene in 2019, the bear market seems to have shorter and shorter legs.
If you were looking for a longer term bullish point of reference, this could be just that sign.