Breaking Down Cohen’s Bold Move
In a whirlwind of financial news, billionaire and hedge fund wizard Steven Cohen has thrown his considerable weight behind a crypto and blockchain-focused hedge fund. The investment was reported by Bloomberg on July 13th and is stirring up excitement in the ever-volatile crypto market.
Who is Arianna Simpson?
Simpson is not just some flash in the pan. Having founded Autonomous Partners in December 2017, she’s got both ambition and a plan. During an interview with Fortune on July 12, she revealed that her fund has already snagged “funding in the low eight digits” from notable backers like Union Square Ventures, Coinbase’s Brian Armstrong, and David Sacks from Craft Ventures.
Investment Focus: Beyond Bitcoin
Now, don’t expect this fund to be another Bitcoin burner. According to Simpson, a minimal portion of the investments is pinned on major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). Instead, the spotlight shines on:
- Crypto infrastructure projects
- Anonymity-oriented altcoins
- Companies solving scalability issues
One of its standout investments includes OX, a protocol aimed at decentralized crypto exchanges. You know, the kind of places where you don’t have to swipe a credit card to buy digital cat memes.
Regulatory Roadblocks Ahead
As any savvy investor would do, Simpson is playing it cautious. She indicated the fund is holding back investments in Ripple (XRP) until U.S. regulators clarify its security status. She summed it up with a quote: “I think the whole space is still waiting for a bit more clarity.” Wise words indeed, especially when regulatory bodies are throwing more shade than sunshine.
The Bigger Picture in Crypto Investments
Now, if you’re wondering if other funds are jumping on the crypto bandwagon, data from Autonomous Research reported that there were about 251 crypto-focused funds as of April 2018. But, here’s the kicker: only 26 new ones have sprung up in 2018, hinting at a potential slowing down in this investment gold rush. In a rather gloomy forecast, some insiders even suggested that 10 percent of these funds could face closure due to regulatory uncertainty. Ouch!
SEC Scrutiny: The Watchful Eye
Indeed, the SEC’s ongoing investigations into crypto-related hedge funds have other investors on edge. With up to 100 crypto funds under scrutiny, the stakes are getting higher, and nailing down compliance is becoming a Herculean task in this digital Wild West.
So, as billionaire Steven Cohen bets big on the crypto future via Autonomous Partners, we can only sit back, watch, and wait. Whether this turns into a gold mine or a slippery slope remains to be seen, but one thing is for sure: the future of crypto financing is anything but boring!
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