Key Takeaways
- • BlockTower Capital acquired rival crypto hedge fund Gamma Point Capital in a deal valued at about $35 million, announced Tuesday, June 8, 2021.
- • The acquisition adds Gamma Point's market-neutral strategy, which seeks profit in both rising and falling markets, to BlockTower's platform.
- • CEO Matt Goetz said the deal is intended to help BlockTower navigate current market volatility and attract price-sensitive institutional investors.
- • Gamma Point's executives will join BlockTower, with the stated goal of building the leading market-neutral fund for crypto.
- • The deal follows a series of crypto-related acquisitions in recent months, including Galaxy Digital's purchases of Vision Hill and BitGo.
Summary
Crypto hedge fund BlockTower Capital has acquired rival hedge fund Gamma Point Capital in a deal valued at about $35 million, announced Tuesday. In an interview with Bloomberg that afternoon, BlockTower co-founder and CEO Matthew (Matt) Goetz said the acquisition is intended to help BlockTower better navigate current market volatility.
Gamma Point describes itself as a quantitative hedge fund investing in digital assets and cryptocurrencies, and its market-neutral strategy seeks returns in both bull and bear markets. Goetz said the capabilities BlockTower gained will help the firm attract more price-sensitive institutional investors. Gamma Point's executives will join the BlockTower team, and the firm said it aims to build the leading market-neutral fund for crypto.
The transaction is one of several crypto-sector acquisitions in recent months, alongside Galaxy Digital's purchases of Vision Hill and BitGo. Coverage noted that the deal could also signal that BlockTower is preparing for the possibility that crypto's latest bull market may be ending, though this reflects analysts' interpretation rather than a stated company position. The Gamma Point acquisition follows BlockTower's $25 million fundraise for decentralized finance (DeFi) projects in March, according to publisher reporting.
Gamma Point describes itself as a quantitative hedge fund investing in digital assets and cryptocurrencies, and its market-neutral strategy seeks returns in both bull and bear markets. Goetz said the capabilities BlockTower gained will help the firm attract more price-sensitive institutional investors. Gamma Point's executives will join the BlockTower team, and the firm said it aims to build the leading market-neutral fund for crypto.
The transaction is one of several crypto-sector acquisitions in recent months, alongside Galaxy Digital's purchases of Vision Hill and BitGo. Coverage noted that the deal could also signal that BlockTower is preparing for the possibility that crypto's latest bull market may be ending, though this reflects analysts' interpretation rather than a stated company position. The Gamma Point acquisition follows BlockTower's $25 million fundraise for decentralized finance (DeFi) projects in March, according to publisher reporting.
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