Hedge fund billionaire Steve Cohen quits crypto startup Radkl amid bear market: report

Steve Cohen, the founder of hedge fund Point72 Asset Management, has reportedly dumped his investment in crypto trading firm Radkl.

According to a Tuesday report by Bloomberg citing a spokesperson for Radkl, Cohen reduced his exposure to crypto investments following his exit from the trading firm. However, the spokesperson reportedly said Radkl was still “extremely well capitalized with its current investors” and continued to grow.

Cohen, whose net worth was estimated at over $17 billion, has backed crypto and blockchain projects both using his personal wallet and through Point72. Cointelegraph reported in September 2021 that the hedge fund manager was part of a $50m funding round for non-fungible token firm Recur, and backed a $21m round for the analytics firm. cryptography Messari via Point72.

While four chief executives are said to have left Radkl in 2022, the company listed only one job posting on its website at press time – for a New York-based Linux engineer. In contrast, Point72 reportedly hired Elie Galam in June to lead the crypto arm of the hedge fund in a bid to increase digital asset trading.

The reported investment came amid extreme volatility in the price of many cryptocurrencies, including Bitcoin (BTC) and Ether (ETH), in what many have characterized as a bear market or the upcoming crypto winter. However, a June report from PricewaterhouseCoopers suggested that despite bearish trends, around 66% of 89 hedge funds surveyed planned to increase their exposure to crypto by the end of 2022.

Related: 3AC: $10 billion hedge fund goes bankrupt with fugitive founders

“We are interested in investment opportunities in the new set of infrastructure companies that bridge the crypto and non-crypto worlds for financial services, enterprises and consumers,” Point72 said in an April blog post. . “Ultimately helping bring crypto to millions of businesses and billions of people around the world.”

Point72 reported as of April 1 that it had more than $24 billion in assets under management. The company also reportedly sublet part of its New York office to Coinbase in June 2021.