Hedge Fund Billionaire Steven Cohen Joins Crypto Party
Hedge fund billionaire, Steven Cohen, has invested in Autonomous Partners that are buying digital coins and acquiring equity in blockchain technology-associated firms. This meant that he is joining the crypto or bitcoin party though the market is struggling to retain its hold amidst regulatory pressures. The focus would be on areas where there is a long-term requirement so that it could survive the current trend of uncertainty. The billionaire also seems to be having a bet on blockchain technology for the long-term purposes as people are waiting for more clarity.
Arianna Simpson, who is also an early believer of digital currency, is heading Autonomous Partners and indicated that funding came investors in the low eight digits. This included Craft Ventures, Union Square Ventures, and CEO of Coinbase, Brian Armstrong. The company was launched only in December last year. According to a Fortune report, she only brought on partners since her focus was beyond the capital being brought by them. Cohen’s venture unit preferred to remain silent despite having alliances with Simpson in the past and did not want to disclose any details.
For instance, Cohen Private Ventures, which has been in existence since 2010, has aligned with Simpson in the past too. The billionaire’s hedge fund firm invested in her venture fund Crystal Towers Capital three years ago. Following this, the company has placed its funding in companies like True Accord or AI debt collection startup. Autonomous Partners disclosed that it wants to focus on areas where it could meet its long-term need. Its objective is to survive current regulatory ambiguity in the digital coin segment.
Autonomous Partners head indicated that a small percentage of its fund would be dedicated towards large cap digital currencies like Bitcoin and Ethereum. At the same time, she is looking forward to seeing the next generation while stating that investors could get access to the popular virtual assets on their own too. She disclosed the area of interest like companies eager to speed up their financial transactions.
Aside from that, she has developed interest on privacy coins due to its ownership anonymity, infrastructure for digital currencies, and the companies that would scale blockchain use cases. For instance, Ox is a protocol that enables the decentralized exchange creation. Alternatively, such exchanges would not be requiring a central management team.
Figuring Out the Need
Simpson said, “It’s still up in the air if people want to do a number of thing on the blockchain. We’re still figuring out what needs one and what doesn’t. But It’s clear they want to trade, and they want to play games.” One of the notable absences of funds investment strategy is the XRP tokens, which is the third digital coin by virtue of market capitalization.
She indicated that though the majority is held by Ripple, she has opted to give a pass due to concerns on the classification of the token as securities by the Securities and Exchange Commission. That would mean subject to more vigorous laws. Significantly, the regulator has clarified that bitcoin and Ethereum were not securities thus sparking more interest.