Steve Cohen’sis eyeing cryptocurrency-related investments.
“We’re exploring alternatives round blockchain know-how and its transformative and disruptive capabilities,” the agency mentioned in a letter to buyers seen by Bloomberg. “We’d be remiss to disregard a now $2 trillion crypto forex market.”
The letter got here after a report Thursday from cryptocurrency-focused web site The Block, which mentioned Point72 was poised to make a large transfer within the area.
Cash managers have been more and more within the sector amid Bitcoin’s rise and optimism concerning the potential of blockchain know-how. Point72 rivalhas been energetic in crypto-related futures and ETFs, together with the , and plans to proceed within the area, in line with an individual with data of the matter. , Yale and different school endowments not too long ago begun cryptocurrency immediately on exchanges, CoinDesk reported.
Nonetheless, the area has been risky. Bitcoin tumbled after crypto champion Elon Musk tweeted Wednesday thatwould not settle for it as fee for its automobiles. He additionally expressed concern concerning the “rising use of fossil fuels for Bitcoin mining and transactions.” In the meantime, the world’s largest cryptocurrency change, , is by the Justice Division and Inside Income Service because the U.S. seeks to root out illicit exercise available in the market.
Point72 might make the wagers below its Point72 Non-public Investments unit or its hedge fund, and can look at “liquidity, threat, and return profiles,” in line with the letter.
“It’s too early to say what paths we’ll finally pursue and when,” the letter mentioned. “We sit up for updating you when we’ve concrete plans on how we count on to method this market.”
A spokeswoman for the agency declined to remark.
(Provides different companies serious about Bitcoin in fourth paragraph, Elon Musk feedback in fifth paragraph.)