Billionaire Steven Cohen Ventures Into Crypto-Centric Hedge Fund
Renowned hedge fund magnate Steven Cohen has made a strategic investment in Autonomous Partners, a hedge fund dedicated to cryptocurrency and blockchain technology.
Major industry players are stepping into the cryptocurrency arena.
Fortune magazine reports that billionaire Steven Cohen has invested in Autonomous Partners, a hedge fund specializing in cryptocurrency and blockchain ventures. This investment was made through Cohen Private Ventures. The fund also features backing from prominent figures like Coinbase CEO Brian Armstrong, Union Square Ventures, and Craft Ventures.
Cohen, the founder of the legendary hedge fund SAC Capital, has remained silent publicly regarding the future of cryptocurrency and blockchain sectors. SAC Capital was closed by the SEC in 2013 due to insider trading allegations. (See also: Billionaire Steven A. Cohen Plans to Launch the Largest Hedge Fund in History). Per its website, Cohen Private Ventures focuses on real estate, asset-backed investments, and direct private equity.
Arianna Simpson, CEO of Autonomous Partners, shared with Fortune that her focus is on long-term potential within the crypto industry. Regulatory frameworks will be a critical factor distinguishing successful ventures from failures. Although the SEC has not provided definitive guidelines, it has issued warnings against certain tokens like Ripple. Simpson noted that only a “small portion” of Autonomous Partners’ portfolio is allocated to bitcoin and ethereum, two cryptocurrencies the SEC has classified as non-securities. “It's still uncertain what blockchain applications will require regulation and which won’t. We are in the process of understanding these needs,” she explained.
Cohen’s involvement in crypto hedge funds is expected to strengthen this emerging ecosystem, especially following the launch of custody solutions by major players such as Coinbase and Ledger. (See also: The Growth of Crypto Hedge Funds). Currently, over 250 crypto-focused hedge funds exist, having delivered returns exceeding 1,100% last year amid soaring cryptocurrency valuations. However, this year has seen a downturn, with most cryptocurrencies, led by bitcoin, experiencing significant declines driven by negative market sentiment and news.
Investing in cryptocurrencies and Initial Coin Offerings (ICOs) carries high risk and speculative elements. This article does not constitute investment advice from Investopedia or the author. Individual circumstances vary, so consulting a qualified financial advisor is essential before making investment decisions. Investopedia does not guarantee the accuracy or timeliness of the information provided. As of this article’s publication, the author holds bitcoin and litecoin.
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