Az akvizíció után a BlockTower kamatoztatni kívánja a Wall Street hozamvadászatát

BlockTower Capital, the cryptocurrency investment firm, is capitalizing on Wall Street’s unquenchable thirst for yield. 

The firm, co-founded in 2017 by Matthew Goetz and Ari Paul, recently acquired Gamma Point in a $35 million deal, as previously reported by Bloomberg. Gamma Point specializes in so-called market neutral strategies and has now been fully integrated into BlockTower, according to a source familiar with the firm’s operations.

BlockTower announced quietly that acquisition on June 28, noting in a press release that “there’s a tremendous market neutral opportunity in cryptocurrency, and it’s something we’ve consistently heard as important from investors and institutions looking for a strategy with this kind of profile that can remove the volatility so many focus on in this market.”

A source said that the firm officially launched its new fund with Gamma Point on Thursday, which will now begin to deploy capital into market-neutral strategies, meaning they won’t take directional long or short bets on a given token or coin. 

The plan is to continue to expand the fund’s strategies — which can span DeFi yield farming to capitalizing on basis funding rates — and opportunistically take on new investors via individual accounts. Thus far, BlockTower has seen success in wooing progressive endowments to the new vehicle, according to a source. 

There are also fund of funds looking to incorporate crypto into their existing market-neutral strategies, the person added. 

Hunt for yield 

Indeed, demand for the new vehicle was significant from such investors, which are hunting for yield in a low-yield environment. 

That’s been evident in the junk U.S. municipal bond market, which has seen strong demand among investors, as noted by A Financial Times. Often, when yields are low, investors flock to riskier investment opportunities. 

In a sense, a market-neutral strategy is more digestible for a large allocator to stomach—relative to other crypto investment opportunities. The thinking goes that such strategies don’t necessarily require an investor to buy into the story of a given token, but rather the notion that inefficiencies in the fast-growing crypto market can produce returns that don’t exist elsewhere. 

As for the logic behind the deal, Gamma Point offered BlockTower a technology stack and execution monitoring capabilities that the firm thinks will provide it with a moat relative to its competitors. BlockTower will continue to eye new “tuck-ins” — that is, acquisition deals that can help build out the firm’s capabilities. 

The firm’s expansion is in line with broader market moves.

Large crypto-focused venture capital and investment firms have been expanding. Paradigm, for instance, recently brought on talent to help portfolio companies recruit and market their wares to the crypto community. a16z — which just unveiled a new $2.2 billion fund — has brought on several heavy hitters to help their portfolio companies with similar functions. 

© 2021 The Block Crypto, Inc. Minden jog fenntartva. Ez a cikk csak tájékoztató jellegű. Nem kínálják, vagy nem szándékoznak felhasználni jogi, adóügyi, befektetési, pénzügyi vagy egyéb tanácsadásként.

Source: https://www.theblockcrypto.com/post/110192/after-acquisition-blocktower-looks-to-capitalize-on-wall-streets-hunt-for-yield?utm_source=rss&utm_medium=rss