Steve Cohen’s Point72 Is Exploring Blockchain, Crypto Sector
Lastly, we came to know that the billionaire Steve Cohen is aiming to make crypto-related investments.
As told in a letter published for clients, the process of exploring and evaluation continues in Cohen’s Point72 Asset Management even though there is not a concrete trading plan yet.
Steve Cohen and his team state that they “are exploring opportunities around blockchain technology and its transformative and disruptive capabilities” and add that they “would be remiss to ignore a now $2 trillion cryptocurrency market.”
The team decided to publish a letter because The Block, the cryptocurrency-themed website, recently claimed that Point72 Asset Management is ready to make a gigantic move in the market. With the letter, it is now clear that Point72 Asset Management currently explores new opportunities in the cryptocurrency market.
Point72 Asset Management will not be the first money manager that enters the world of cryptocurrency. On the contrary, the virtual finance industry is noticed by an increasing number of money managers as the rise of Bitcoin creates an optimistic atmosphere regarding the potentials of blockchain. A person with info on the issue mentioned that Millennium Management, one of the rivals of Point72 Asset Management, is quite active in the crypto market and plans to remain so. Coindesk reported that several college funds such as Harvard University and Yale are also beginning to accept cryptocurrency on their exchanges.
Having said that, we must also note that Bitcoin very recently experienced a serious flop. This was mainly due to Elon Musk’s tweet, which declared that Tesla Inc. gave up accepting Bitcoin in the purchase of its cars. He also stated his concerns about the fossil fuels that are used at an increasing level in the mining and transactions in the Bitcoin sector. This is given as another reason for Bitcoin’s flop. Furthermore, the Justice Department and Internal Revenue investigate Binance Holdings Ltd., the number one crypto exchange in the world, due to suspicion of illicit market activity.
All these show that the crypto market is still a volatile field. Therefore, Point72 Asset Management also considers these latest developments and evaluates the “liquidity, risk, and return profiles” as the letter states.
Steve Cohen and his team state that they surely want to “have a seat at the table”; however they also said that “it is too early to say what paths we will ultimately pursue and when.” The letter ends by ensuring that Point72 Asset Management looks forward to updating its clients “when [the team has] concrete plans on how [the team expects] to approach this market.”
A spokesperson for Point72 refused to comment further on the issue. From a broader perspective, we can assert that we will surely witness more investors and companies joining this evolution process in the upcoming period. Finance 2.0 is also waiting for you. Open a Koinal account today and take your part in this paradigm shift!