Last Updated: 15 August 2022
Another hedge fund wants to enter the world of bitcoin. Point72 is working on a move into the industry.
Steven Cohen and Point72 want to start trading in the spot and derivatives market with a new crypto fund. This is what Blockworks reports.
— CoinDesk (@CoinDesk) August 12, 2022
Step into ‘crypto
It is not yet clear exactly what Point72 intends to offer. The American company has over $24 billion in assets under management.
The move is still in the planning stages. A specific division must be set up to manage the move to crypto. It should also be a source of liquidity for other funds in the industry. Cohen, Director and billionaire, states that it will require substantial investments.
A hedge fund (or leveraged fund) is an investment fund for a limited number of investors. As the name suggests, this type of fund can use a number of extra financial products. They earn money through a ‘performance fee.’
However, the world of bitcoin and crypto is already full of risks and many pitfalls. Trading futures and other derivatives can bring you a lot of wealth. But there is also a good chance that sooner or later, you will end up financially disappointed.
For example, we saw this earlier this year with crypto hedge fund Three Arrows Capital. They went under earlier this year.