Cohen Investing in Crypto Hedge Fund
According to the latest news reports, billionaire Steven Cohen, once called the Hedge Fund King, is entering the cryptocurrency space. The hedge fund billionaire has invested in Autonomous Partners, a hedge fund focused on cryptocurrencies. This investment has been made through his venture capital firm, Cohen Private Ventures.
Autonomous Partners was founded in 2017 by Arianna Simpson, an early proponent of cryptocurrencies. And this is not the first time that Cohen has invested in Simpson’s ventures. In 2015, Cohen Private Ventures had invested in Simpson’s venture fund called Crystal Towers Capital.
Other Investors in Autonomous Partners
According to Simpson, Cohen’s VC is not the only company to invest in their hedge fund. She stated in an interview on Thursday that they had also secured investments from Coinbase Inc.’s Chief Executive Officer Brian Armstrong, Union Square Ventures as well as David Sacks, the co-founder of Craft Ventures.
Simpson stated that she has only brought on those partners that she thinks will add value to the venture beyond just providing funding.
The Focus of Autonomous Partners
Simpson stated that she is interested in investing in cryptos that act as general purpose money. In line with that ambition, she is also planning on investing in companies that are developing the financial infrastructure of the next generation. Besides next gen cryptocurrencies, Simpson said that her company also invested in large cap cryptos like BTC and ETH.
Because of the fact that the cryptocurrency industry is still very young, there is a lot of uncertainty in this space. Which is why Simpson says that she want to focus on investing in areas that can outlast the current deluge of regulatory upheaval and uncertainty due to their long-term applications.
The kinds of investments that Simpson is looking at making investments include firms that are working on speeding up financial transactions, firms dealing with cryptocurrency infrastructure, privacy tokens that are focused on anonymizing coin ownership as well as those companies that are working on the massive issues related to scalability in Blockchain networks.
For example, Autonomous Partners has already made investments in 0x, a protocol that is working on the creation on decentralized exchanges.
One exception to her investment portfolio is the XRP token. This is the token created by the payments system company Ripple (which is also the name by which its token is known). Ripple tokens (XRP) are the world’s third most valuable cryptocurrencies in terms of market capitalization, but Simpson will not invest in them.
Simpson is concerned that the SEC (Securities and Exchange Commission) could classify these assets as securities, which would then subject her firm to more difficult laws.