Billionaire Steven Cohen Invests In Crypto Fund
Billionaire American investor and hedge fund manager Steven Cohen has reportedly ventured into the crypto space.
Cohen is popular for the companies he founded: Point72 Asset Management and S.A.C Capital Advisors.
Fortune reported in an article released on Thursday, July 12 that the hedge fund billionaire had invested in a cryptocurrency and blockchain hedge fund.
Cohen joins the ranks of major Wall Street figures venturing into the world of cryptocurrency and blockchain with an investment in Autonomous Partners.
According to the report, Cohen’s investment was made through his private equity firm Cohen Private Ventures.
Cohen who holds the 8th rank on the Forbes list of 400 Self-Made has made a strong move towards cryptocurrency with an investment in the crypto and blockchain focused hedge fund.
Autonomous Partners was founded by Arianna Simpson in December 2017.
Simpson is a venture capitalist who has a strong history with cryptocurrencies, as she was one of the earliest advocates and avid believer of Bitcoin.
Simpson notes that her firm, Autonomous Partners is focusing on areas where it sees long-term needs.
Simpson received an investment from Cohen’s venture arm in 2015 when she launched her Crystal Towers Capital.
Autonomous Partners have in the past received investments from the likes of Brian Armstrong – CEO of Coinbase, David Sacks Craft Ventures, and Union Square Ventures.
Simpson revealed that Autonomous Partners have secured “funding in the low eight digits” from the above individuals.
Although Cohen’s investments headlined, the size of her new investment was not disclosed. In speaking about investors, Simpson said:
“I’ve only brought on partners that I think can be very much value-add beyond their capital”
The Fortune report also reveals that although Autonomous Partners has investments in major crypto players like Bitcoin (BTC) and Ethereum (ETH), the firm is more concentrated on smaller cryptocurrencies.
Simpson referred to the smaller coins as “next generation” cryptocurrencies which would possibly transform the way cryptocurrencies are presented.
Although cryptocurrencies and the influence of blockchain is rapidly growing and finding relevance every day, Simpson has a primary concern for cryptocurrencies.
Simpson On the Future of Blockchain
The increasing relevance of application of the blockchain technology in multiple facets has seen the industry face stern opposition by regulatory bodies.
However, in speaking with Fortune, Simpson revealed that she believes that cryptocurrencies and blockchain will outlive the current regulatory problems plaguing the industry.
“It’s still up in the air if people want to do a number of things on the blockchain. We’re still figuring out what needs one and what doesn’t. But it’s clear they want to trade, and the want to play games.”
Simpson revealed that her fund has held off from investing in Ripple (XRP) until the U.S regulators specify whether XRP will be classified as a security or not.
Most other cryptocurrency faces similar issues with regulatory bodies around the world, and Simpson believes that “the whole space is still waiting for a bit more clarity”.