Bitcoin

Blocktower Capital Crypto Hedge Fund Raises $140M in Five Months

JP Buntinx | January 8, 2018 | 11:00 am
Blocktower Capital Cryptocurrency Hedge Fund Raises
Bitcoin

Blocktower Capital Crypto Hedge Fund Raises $140M in Five Months

JP Buntinx | January 8, 2018 | 11:00 am

There appears to be a genuine demand for cryptocurrency-related hedge fund investment opportunities. We have seen quite a few of these investment vehicles come to market in 2017. Blocktower Capital is one of these ventures, which is spearheaded by former Goldman Sachs VP Matthew Goetz. So far, the project has raised $140m in backing, which is rather impressive. Silicon Valley and Wall Street have not given up yet on their cryptocurrency dreams.

It is always good to see more cryptocurrency hedge funds come to market. These investment vehicles provide institutional investors with a new outlet to generate profits. With Blocktower Capital, it is evident there is a growing demand for services such as this one. After raising $140m since August 2017, things are certainly off to a good start. Among the investors are Andreessen Horowitz, other VR firms, and family offices. A healthy mix of different types of investors, to say the very least.

Blocktower Capital is off to a Good Start

As one would expect, this money will be put to good use. A portion of the funds is used to increase company staff. Although there are still “only” eight executives, it’s a step in the right direction. Their latest hired hand is Michael Bucella, another former Goldman Sachs employee. Traditional financial experts are slowly flocking to cryptocurrency, which is a remarkable trend. It is evident there is a bright future ahead for hedge funds such as this one.

For the time being, it remains unclear which currencies Blocktower Capital intends to focus on. Other hedge funds usually stick with Bitcoin, Ethereum, and perhaps Bitcoin Cash. There’s also one particular fund which focuses solely on Ripple’s XRP. It is impossible to tell which is the best strategy right now. After all, most cryptocurrencies have soared in value over the past twelve months. There are hardly any wrong pickings, except for the obvious pump-and-dump coins.

Whether or not this new capital market will be the holy grail for hedge fund managers, remains to be seen. Blocktower Capital CEO Goetz is convinced this market needs to be tapped as quickly as possible. At the same time, everyone focusing on the same two or three cryptocurrencies will yield negative results in the long run. Bitcoin is far from perfect in its current state, to say the very least. Moreover, there are quite a few undervalued currencies in the top 50 as we speak. An interesting future lies ahead, that much is rather evident.

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  • Clarence Van

    I can see their fund collaborating with what Polymath is doing with their platform. They could launch their own securities through them.

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