BlockTower Capital's hedge fund raises $140m

Investors of the American cryptocurrency hedge fund BlockTower Capital were Union Square Ventures LLC, Andreessen Horowitz and others
05 January 2018   769

The rapid growth of bitcoin and altcoins last year coincided with the launch of futures, which allow investors to work with cryptocurrencies in regulated markets. Another evidence of the penetration of bitcoin into the world of traditional finance can be the emergence of a large number of crypto-currency funds. One of them has already attracted $ 140 million.

According to Bloomberg, the investors of the American fund BlockTower Capital were Union Square Ventures LLC, Andreessen Horowitz, as well as several venture capital companies and companies for the trust management of family capital. Recently BlockTower notified potential investors that since January 1, the collection of funds within the framework of the main fund has ceased.

In addition, Michael Buchella, former vice-president of Goldman Sachs Group, joined the fund's team as head of business development.

According to Morgan Stanley, more than 100 funds are already working in the crypto-currency area, under management of which there are assets worth $ 2 billion. Large companies, such as Goldman Sachs, also take part in this process, providing their clients with clearing services for crypto-exchange contracts.

Hedge Fund Research has launched an index that tracks the performance of funds working in this area. It was found that in November the yield of funds investing in crypto-currencies and the blockchain-company amounted to 1,500%, while the profitability of funds, whose investments are limited to digital assets, exceeded 1,600%.

Recall that in December BlockTower put a million dollars to the fact that before the end of this year, the bitcoin rate will reach $ 50,000.

Crypto to Fail Fundamental Test, BoE Says

Bank of England senior adviser belives digital assets have no value and they are slower
22 January 2019   93

Bitcoin and other cryptocurrencies do not pass basic tests of financial services, but still pose a threat to the stability of the traditional economy. This was stated by Bank of England senior adviser Hugh van Steenis in an interview with Bloomberg.

According to him, digital assets have no value, they are slower in circulation and cannot be considered an ideal unit of exchange.

He pointed out that the biggest problem for the Bank of England is the regulation of cryptocurrency turnover, in particular, the regulation of the activities of new members of the banking system.

What I love when meeting with Fintechs is their obsession with customers. The challenge is will they get customers before the traditional banks can innovate.
 

Hugh van Steenis

Senior adviser, Bank of England

At the same time, Hugh stressed that the transition to digital technologies, as well as the implementation of fintech solutions, are on the list of priorities of the Bank of England.

According to him, traditional companies and banks somehow adapt to the threat from fintech. However, this can be said with certainty when the technological costs for these goals exceed 25% of the total budget of financial institutions.

Recall that in December 2018, the Financial Action Task Force on Money Laundering (FATF) called on the UK government to strengthen oversight of the cryptocurrency industry.