Steve Cohen, the billionaire founder of Point72 Asset Management, has recently dipped his toes into the world of cryptocurrency by allocating a small portion of his portfolio to Bitcoin. He was encouraged by his son, who has a strong interest in the asset, to make a transaction on Coinbase. While Cohen does not dedicate much attention to monitoring its activity, he recognizes the potential value of Bitcoin as it continues to gain popularity. He views it as a piece of the larger ecosystem of cryptocurrencies and believes its value proposition hinges upon the development of practical applications.
Initially, Cohen held a skeptical view towards cryptocurrencies due to their high-risk nature. However, his son’s enthusiasm for the field led him to explore its potential further. Through Point72 Ventures, his investment firm, Cohen made significant investments in the crypto sector in 2021, including a $21m funding round for Messari, a crypto-focused data platform, and a direct investment in digital asset investment firm Radkl. These investments marked a shift in Cohen’s perspective on cryptocurrencies and demonstrated his growing interest in the space.
The involvement of prominent figures like Cohen and established financial institutions in the cryptocurrency market in 2021 contributed to its growth and legitimization. Banks, payment processors, and asset management firms cautiously entered the cryptocurrency space by offering related services to their clients. Cohen’s reputation as a Wall Street veteran with decades of experience and success in the financial industry lent credibility to the emerging crypto market. His investments in various crypto companies further solidified his belief in the potential of digital assets.
Cohen’s career as a prominent American financier has been marked by high-risk, high-reward investment strategies. Despite facing challenges such as the shutdown of his hedge fund SAC Capital in 2013 due to insider trading, Cohen remains active in the financial world as the chairman and CEO of Point72. In recent years, Point72 Ventures has been involved in funding rounds for various crypto companies, including a $10m Series A funding round for Netherlands-based crypto derivatives exchange D2X. The exchange has secured a license from the Dutch Authority for Financial Markets, allowing it to function as a regulated trading platform for cash-settled crypto futures and options.
Overall, Steve Cohen’s journey from skepticism towards cryptocurrencies to becoming an investor in the space reflects the evolving attitudes of seasoned investors towards digital assets. As cryptocurrencies gain mainstream acceptance and recognition, more traditional investors like Cohen are exploring opportunities in the market. His investments in crypto companies and participation in funding rounds have contributed to the growth and development of the cryptocurrency ecosystem, signaling a potential shift in the financial industry towards embracing digital assets as a legitimate investment opportunity. Cohen’s foray into cryptocurrency demonstrates a willingness to adapt to changing market dynamics and explore new investment opportunities in emerging sectors.
