From Alan Howard to Steve Cohen, some of the world’s biggest hedge fund managers are set to cash in on the latest crypto rally.
The crypto market is surging and so is the interest of leading global hedge funds in the emerging asset class.
Brevan Howard launched its dedicated digital assets unit in September 2021. The hedge fund’s bet on the crypto market paid off in 2023 as its digital asset strategy returned 44%, compared with a loss of 2.1% in its flagship master fund, according to Bloomberg.
Its founder, Howard, is looking at selling his stakes in crypto firms Copper and Bitpanda and reinvesting the proceeds in Brevan Howard Digital amid strong returns in 2023.
Point72
Brevan Howard is not the only hedge fund going big on digital assets. Cohen’s Point72 has been strengthening its crypto team for the last couple of years, hiring some of the most prominent names in the industry.
Point72 appointed Elie Galam, a former portfolio manager at Two Sigma, in June 2022 as the head of crypto for Cubist Systematic Strategies, the systematic investing business of the firm. In November 2022, Meraki Global Advisors’ chief operating officer Michael Ashby joined Cohen’s hedge fund as head of digital assets strategic implementation.
Point72 added Robinhood’s Lionel Sukhram 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 firm made its first crypto bet in August 2021 by investing in the crypto analytics platform Messari. Since then, Point72 Ventures has invested in several crypto startups including digital asset trading platform 24 Exchange and D2X.
Tudor Investment
Hedge fund billionaire Paul Tudor Jones, the founder and chief investment officer of Tudor Investment, has been a big supporter of bitcoin. He said investing in crypto could be a good hedge against rising inflation during a June 2021 interview with CNBC.
In February 2021, Jones backed North Island Ventures’ $72 million VC fund to invest in crypto startups.
Tradfi’s crypto moment
Staying on crypto, traditional finance firms are now more bullish on bitcoin and other digital assets. With the approval of spot bitcoin ETFs in the US, large institutions are getting more aggressive on the trading side of crypto offerings, according to industry leaders.
“Well-established tradfi firms will continue to win business at the expense of new entrants built to service the crypto-native community, which runs much more on mutual trust,” said Michael Walsh, executive chair for Ireland at Standard Chartered’s crypto firm Zodia Markets.
Standard Chartered has raised its year-end bitcoin price forecast to $150,000.
Crypto hires
Standard Chartered-backed crypto custodian Zodia Custody has hired Aquanow’s Apac business development head Kal Chan as chief executive of its Hong Kong business. Crypto exchange Coinbase has hired Goldman Sachs associate Connor Seaks as a credit risk analyst in the US.
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To contact the author of this story with feedback or news, email Bilal Jafar
