Steve Cohen’s Point72 Is Exploring Blockchain, Crypto Sector
Steve Cohen’s Point72 Asset Management is eyeing cryptocurrency-related investments.
“We are exploring opportunities around blockchain technology and its transformative and disruptive capabilities,” the firm said in a letter to investors seen by Bloomberg. “We would be remiss to ignore a now $2 trillion cryptocurrency market.”
The letter came after a report Thursday from cryptocurrency-focused website The Block, which said Point72 was poised to make a sizable move in the space.
Money managers have been increasingly interested in the sector amid Bitcoin’s rise and optimism about the potential of blockchain technology. Point72 rival Millennium Management has been active in crypto-related futures and ETFs, including the Grayscale Bitcoin Trust, and plans to continue in the space, according to a person with knowledge of the matter. Harvard University, Yale and other college endowments recently begun buying cryptocurrency directly on exchanges, CoinDesk reported.
Still, the space has been volatile. Bitcoin tumbled after crypto champion Elon Musk tweeted Wednesday that Tesla Inc. would no longer accept it as payment for its cars. He also expressed concern about the “increasing use of fossil fuels for Bitcoin mining and transactions.” Meanwhile, the world’s biggest cryptocurrency exchange, Binance Holdings Ltd., is under investigation by the Justice Department and Internal Revenue Service as the U.S. seeks to root out illicit activity in the market.