Key Takeaways
- • Billionaire Steven Cohen has invested in Autonomous Partners, a hedge fund focused on cryptocurrency and blockchain, according to a Fortune report cited by Investopedia.
- • Cohen made the investment through Cohen Private Ventures; he has not publicly commented on the prospects for crypto or blockchain.
- • Autonomous Partners' backers reportedly include Coinbase CEO Brian Armstrong, Union Square Ventures, and Craft Ventures.
- • Autonomous Partners head Arianna Simpson says only a "small percentage" of the fund is invested in bitcoin and ethereum, which she said the SEC has declared are not securities.
- • Investopedia reports more than 250 crypto-focused hedge funds exist, which returned over 1,100% last year, though most coins, led by bitcoin, have slumped by double digits in 2018.
Summary
Billionaire Steven Cohen has invested in Autonomous Partners, a hedge fund focused on investments in the cryptocurrency and blockchain industry, according to a report in Fortune magazine. Cohen made the investment through Cohen Private Ventures. The fund also counts investors including Coinbase CEO Brian Armstrong, Union Square Ventures, and Craft Ventures among its backers.
Cohen founded SAC Capital, which the SEC shut down for insider trading in 2013. He has not publicly commented on the prospects for the cryptocurrency or blockchain industry. According to its website, Cohen Venture Partners focuses on real estate, other asset-based investments, and direct private equity.
Arianna Simpson, head of Autonomous Partners, told Fortune that the firm is focused on areas with long-term prospects within the industry. She identified regulation as a key factor separating winners from losers. Although the SEC has not outlined clear distinctions, it has already fired warning shots against certain coins, such as Ripple. Simpson said a "small percentage" of the fund is invested in bitcoin and ethereum, which the SEC has declared are not securities. She added, "It's still up in the air, if people want to do, a number of things on the blockchain. We're still figuring it out what needs one and what doesn't."
Investopedia noted that Cohen's entry should further boost the crypto-focused hedge fund ecosystem, following news of custody solutions being launched by players such as Coinbase and Ledger. According to reports, more than 250 crypto-focused hedge funds exist today, and they produced returns of more than 1,100% last year on rising prices and valuations. This year has been different, with most coins, led by bitcoin, slumping by double digits amid negative sentiment and news.
Cohen founded SAC Capital, which the SEC shut down for insider trading in 2013. He has not publicly commented on the prospects for the cryptocurrency or blockchain industry. According to its website, Cohen Venture Partners focuses on real estate, other asset-based investments, and direct private equity.
Arianna Simpson, head of Autonomous Partners, told Fortune that the firm is focused on areas with long-term prospects within the industry. She identified regulation as a key factor separating winners from losers. Although the SEC has not outlined clear distinctions, it has already fired warning shots against certain coins, such as Ripple. Simpson said a "small percentage" of the fund is invested in bitcoin and ethereum, which the SEC has declared are not securities. She added, "It's still up in the air, if people want to do, a number of things on the blockchain. We're still figuring it out what needs one and what doesn't."
Investopedia noted that Cohen's entry should further boost the crypto-focused hedge fund ecosystem, following news of custody solutions being launched by players such as Coinbase and Ledger. According to reports, more than 250 crypto-focused hedge funds exist today, and they produced returns of more than 1,100% last year on rising prices and valuations. This year has been different, with most coins, led by bitcoin, slumping by double digits amid negative sentiment and news.
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