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Cryptocurrency Hedge Fund Headed by Ex-Goldman Sachs VP Raises $140 Million

It looks as if Silicon Valley and Wall Street are coming together just to see who can shower cryptocurrency ventures with more money.

Also Read: Strong Cryptocurrency CFD Volumes Bring Record Revenues for Plus 500

Blocktower Capital Crypto Hedge Fund

Cryptocurrency Hedge Fund Headed by Ex-Goldman Sachs VP Raises $140 MillionBlocktower Capital is a cryptocurrency hedge fund headed by former Goldman Sachs vice president Matthew Goetz. The new venture was only launched in August 2017 and has already said to have raised about $140 million.

Investors in Blocktower reportedly include family offices and other entities such as venture capital firms such as Union Square Ventures LLC and Andreessen Horowitz.

Some of the raised funds were apparently redirected towards boosting the company’s staff, now estimated to sport eight executives. On Thursday Blocktower issued a statement that it hired Michael Bucella, who was also with Goldman Sachs since 2008. Bucella’s last role at the bank was related to multi-asset sales in Canada, where he headed strategic partnerships and business development.

Alpha Potential Is Abundant

Cryptocurrency Hedge Fund Headed by Ex-Goldman Sachs VP Raises $140 MillionOn its sparse website Blocktower Capital’s only description of its investment strategy, goals or operation is “bringing professional trading and portfolio management to an emerging digital asset class.” There is no mention of what cryptocurrencies they will focus on for trading, as well as whether they will invest in ICO tokens or stocks of any ‘blockchain’ companies.

However, CEO Goetz, described what is the opportunity the fund can capitalize on: “It’s a wildly inefficient market where alpha potential is abundant — more than anything we’ve seen in our careers. We think it’s a rare opportunity for investors. It’s not often there’s a new capital market being born in front of you.”

This sentiment appears to be shared among more and more investors in both the finance and the venture capital worlds. A few notable examples include legendary value investor Bill Miller who now holds half of his hedge fund in bitcoin, TechCrunch and CrunchFund founder Michael Arrington‘s $100 million XRP hedge fund, billionaire investor Michael Novogratz and most recently Peter Thiel’s Founders Fund.

Would you invest in a cryptocurrency hedge fund run by former ex-Goldman Sachs executives? Tell us what you think in the comments section below.


Images courtesy of Shutterstock.


Do you like to research and read about Bitcoin technology? Check out Bitcoin.com’s Wiki page for an in-depth look at Bitcoin’s innovative technology and interesting history.

Tags in this story
Andreessen Horowitz, bitcoin hedge fund, BlockTower, Cryptocurrency Hedge Fund, Goldman Sachs, N-Featured, Silicon Valley, Union Square Venture, Venture Capital Funding, Wall Street
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Avi Mizrahi

Avi Mizrahi is an economist and entrepreneur who has been covering Bitcoin as a journalist since 2013. He has spoken about the promise of cryptocurrency and blockchain technology at numerous financial conferences around the world, from London to Hong-Kong.