Steve Cohen moves into crypto derivatives under the radar. 

The crypto market capitalization is currently at $996 billion, which is a third of what it was a year ago, in November 2021, when the crypto market capitalization reached three trillion US dollars.

So the cryptocurrency bubble popped, and Steve Cohen moves into crypto derivatives comes as no surprise. 

For crypto investors, it certainly feels like the bubble has popped with two trillion dollars wiped off the crypto market capitalization in one year.   

“the cryptocurrency bubble popped, and Steve Cohen moves into crypto derivatives comes as no surprise”

WEALTH TRAINING COMPANY

The investor psychology cycle has stabilized along the bottom peak depression following the collapse of Terra stablecoin UST and the demise of crypto lenders, including Celsius and Voyager.

High-profile collapses often signify seller capitulation when the sharks smell blood and go bargain hunting. It is where the investors’ psychology cycle troughs. 

It is a rough zero-sum game, few who win big make it from the losses of the many.  

So Steve Cohen moves into crypto derivatives which will entail his fund Point 72 Management to make operational investments to establish a crypto-only derivative fund. 

Point 72 Management investment intends to create a new exclusive-only crypto fund dedicated to  hiring talented staff and laying the groundwork for compliance paperwork.

“Point 72 Management investment intends to create a new exclusive-only crypto fund”

WEALTH TRAINING COMPANY

While Steve Cohen’s moves into crypto derivatives are in their early business plan stage, the goal is for investors to trade spot cryptocurrencies, according to sources familiar with the matter

Steve Cohen’s Point 72 exclusive crypto fund aims to offer spot cryptocurrency prices, trade digital asset derivatives, and write checks to outside digital asset-focused hedge fund managers.

Steve Cohen moves into an exclusive crypto fund could also include seed deal funding,  where the billionaire invests capital in a startup crypto company in exchange for an equity stake or convertible note stake in the company

 Steve Cohen has already acquired stakes in crypto startups, which he believes offer alpha future returns.

“The recent crypto market crash has not deturbed heavy-weight investors who have been moving into the space acquiring bottom basement prices as the market continues to roil” – Wealth Training Company

Steve Cohen moves into crypto derivatives, along with several other deep pocket billionaire investors could be interpreted as further evidence that cryptos have become a landscape of 21 st century finance

The recent crypto market crash has not deturbed heavy-weight investors who have been moving into the space acquiring bottom basement prices as the market continues to roil.

We believe cryptos with utility, enabling business and government entities with more cost-effective operations could provide investors with alpha returns. Moreover, the more immutable and secure the network is from hacking, the greater the value of the network.

Smart contracts could revolutionize real estate conveyancing and international trade of the future. 

So the most secure blockchain is where the high-value business will be conducted, providing the highest gas fees and optimum returns for investors.  

So, think of the utility of chains in the physical world and their creative applications from driving pulls in an engine, powering a chainsaw, and driving a windmill. The greater the integrity of the chain, the more valuable its application. 

So a timing chain in an engine has greater integrity, value, and utility than a cycle chain.  

“The regulatory uncertainty between the SEC and the Commodity Futures Trading Commission (CFTC), in terms of whether the likes of bitcoin and ether are securities or commodities, underscores the tensions”
Wealth Training Company

In addition to Steve Cohen’s moves into crypto derivatives, the new firm also plans to invest in decentralized finance projects, including yield farming, according to sources familiar with the matter

Steve Cohen’s Point 72 also intends to engage in staking, which is a way of earning rewards for holding some cryptocurrencies.

So crypto investors can stake some of their holdings and earn a percentage-rate reward over time. 

Steve Cohen has no immediate plans to accept outside capital. 

Nevertheless, the endeavor is a mechanism for Cohen to start laying the foundation for a future broad-based crypto trading platform. 

Despite the bear market, competition for top-tier talent has intensified as Point72 multi-strategy hedge fund rivals, such as Millennium Management, have increasingly devoted resources to the sector. 

Even skeptics like Citadel’s Ken Griffin, who called cryptocurrency a “jihadist call” against the US dollar, in the autumn of 2021, have reversed their position and are now acknowledging digital assets are here to stay.

But the crypto market is still well off reaching peak adoption, a sign crypto market capitalization has the potential to go much higher.

Conservative sovereign funds have yet to come onboard urging more regulatory clarity.  

The regulatory uncertainty between the SEC and the Commodity Futures Trading Commission (CFTC), in terms of whether the likes of bitcoin and ether are securities or commodities, underscores the tensions.

“The regulatory stuff is something they’re concerned about, as well,” one source said. “They’re worried about how they touch this asset class.”

Regulatory certainty, whether the SEC classifies the major cryptos as a commodity or a security, is now the only thing coming between Ethereum and Bitcoin and a wall of sovereign wealth capital. 

So Steve Cohen moves into crypto comes at an opportune time, it is also a natural extension of Cohen’s angel investments in blockchain companies. 

Steve Cohen has had his ebbs and flows in crypto investing.

For example, he exited his stake in crypto trading start-up Radkl, which Point 72 refused to comment on the sale. 

We can only assume he must have taken a sizable loss on this one. 

Point72 has $26.1 billion in assets under management. The firm is looking to hire a host of candidates for its own developing internal crypto operations.