GoldenTree, $45b Asset Manager, Is Buying Bitcoin
Add GoldenTree Asset Management to the growing list of hedge funds and other traditional Wall Street players making a foray into Bitcoin.
The New York-based firm has been adding Bitcoin to its balance sheet as a diversifier for the broad mix of debt-focused strategies it has run for years, according to two sources with knowledge of the matter. The sources were granted anonymity to discuss sensitive business dealings.
Executives at GoldenTree have held conversations in recent months about bringing on new staffers with expertise on the investment and operational sides of crypto investing, one of the sources said.
Existing partners at GoldenTree have expertise in trading crypto and making VC-style investments in blockchain companies, the source added.
Indeed, Tannabaum, plus partners Deeb Salem and Joseph Naggar personally backed an early July funding round for Borderless Capital, which focuses on the Algorand ecosystem. A source added that a GoldenTree limited-partner has a significant existing investment in Algorand.
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It's not clear when GoldenTree started snapping up bitcoin or to what extent the operation is actively trading the world's first cryptocurrency. Indications are that, at this point, GoldenTree has been limited to bitcoin exclusively internally, versus other kinds of cryptos.
It's notable, however, that GoldenTree updated its SEC filings in April to permit the acquisition and trading of a broad mix of cryptocurrencies and to make investments in blockchain-based applications.
The update gives GoldenTree the mandate to put its limited-partner money to work in decentralized finance (DeFi), protocol tokens and other "distributed ledger" technologies. In a list of risks associated with investing in crypto, the firm noted the potential for regulation to materially impact its investments in the future.
'While cryptocurrency generally is not currently regulated as a currency, security or similar asset/instrument in the United States, it has attracted the attention of U.S. regulatory agencies, and future regulation is likely," GoldenTree wrote.
The firm operates hedge funds, private credit and private equity vehicles, in addition to offering separately managed accounts to a mix of institutional limited-partners.
Other significant asset managers investing in or looking to make a jump into the crypto space include Bain Capital, Balyasny Asset Management, Boothbay Fund Management, Millennium Management, Point72 Asset Management and Soros Fund Management.
Add GoldenTree Asset Management to the growing list of hedge funds and other traditional Wall Street players making a foray into Bitcoin.
The New York-based firm has been adding Bitcoin to its balance sheet as a diversifier for the broad mix of debt-focused strategies it has run for years, according to two sources with knowledge of the matter. The sources were granted anonymity to discuss sensitive business dealings. Subscribe for full article
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