Steve Cohen, the billionaire founder of hedge fund Point 72 Asset Management, has agreed to back a new cryptocurrency-trading platform, the Wall Street Journal reported Tuesday.
A press release issued Tuesday says Cohen has agreed in principle to personally invest in Radkl, a quantitative trading firm with a focus on digital assets. The company is led by a team from York-based high speed trading firm GTS. According to the WSJ, Cohen’s stake in Radkl has not been disclosed. He will not be involved in day-to-day operations, according to a spokesperson. The press release adds that Cohen will not have any day-to-day involvement in operations at the firm.
“While the cryptocurrency market is now a $2 trillion asset class, we are still in the early stages of institutional adoption,” Cohen said in a statement. “As more professional investors enter this space, there’s a need for institutional acumen and a firm like Radkl.”
While Cohen is investing personally, his Point 72 hedge fund has also thrown its weight behind the crypto space this year. In August, the firm made its first investment in the sector, backing crypto analytics firm Messari. Point 72 led a $21 million funding round in the company.
Support of billionaires like Cohen, as well as large institutions, has helped propel the market for digital assets to new heights in 2021. A range of big banks, payments companies, and asset managers have all dipped their toes into the space to offer crypto services for clients.
The rapid expansion of the market has also drawn the attention of regulators, and US Securities and Exchange Commission chief Gary Gensler is set to list crypto at the top of his agenda when he addresses Congress on Tuesday.