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Crypto Hedge Fund Packed With Ex-Goldmanites Raises A Paltry $140 Million

Don't bother us again until you've got a ten-figure AUM.
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There's a new career path for millennial Wall Streeters looking to score big while they're still young. It looks like this:

  1. Work at Goldman.
  2. Start a cryptocurrency-based investment outfit.
  3. Profit.

Most recently we witnessed the miraculous birth of Crescent Crypto Asset Management, a fund run by twentysomething Goldman alums whose cryptocurrency “ETF” plans to charge one-and-ten management/performance fees for the service of placing bit-curious investors into a well-balanced portfolio of digital tokens, from big names like bitcoin and ethereum to the likes of Neo and Stratis.

Well, here's another one:

BlockTower Capital, a digital currency hedge fund launched in August, raised $140 million and hired a former vice president at Goldman Sachs Group Inc., expanding its team to eight people, according to people familiar with the matter.

The people told Bloomberg that the impressive-sounding firm had received checks from institutional investors including family offices as well as venture capitalists – namely, Silicon Valley stalwarts Union Square Ventures and Andreessen Horowitz. And since it's not enough that BlockTower's co-founder and CEO Matthew Goetz hails from Goldman, on Thursday the fund announced another get from 200 West:

BlockTower also hired Michael Bucella, who joined Goldman in 2008 and most recently worked in multi-asset sales for Canada, as head of strategic partnerships and business development, according to the people.

This pattern makes sense not only for the Goldmanites but their new investors. What better indication that this isn't some goofball scam to be avoided but a real alpha-generating opportunity than the presence of seasoned Goldman Sachs alumni in the fund?

The question is when the opposite movement will emerge: that of crypto heads getting snatched up from their server arrays and subreddits by Goldman and its ilk. We know Lloyd has already given in to the siren call of his more millennial-adjacent colleagues and decided to capitalize on the greatest FOMO trade of all time. The next step is actually hiring the weirdos who put Goldman in this position.

Cryptocurrency Hedge Fund BlockTower Raises $140 Million [BBG]


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