BlockTower Capital is a cryptocurrency hedge fund that was launched in August. According to sources close to the team, the fund raised $140 million and also hired a former vice president from Goldman Sachs Group Inc, expanding its team to 8 people.
The $140 million capital was raised from family offices and other institutions such as venture capital firms. These include Union Square Ventures LLC and Andreessen Horowitz who both declined to make further comments, as did BlockTower.
In a statement on Thursday, the company revealed that it hired Michael Bucella as head of strategic partnerships and business development, who joined Goldman Sachs and had his last position in multi-asset sales for Canada.
The cryptocurrency market has been gaining a lot of attention recently and currently, there are around 100 cryptocurrency hedge funds with a capital larger than $2 billion.
Another big player on the market, Hedge Fund Research, launched last month an index tracking funds investing in Blockchain technology and digital currencies which peaked more than 1500% through November. During the same period, another index focused only on currencies increased 1600%.
BlockTower Capital was founded by Matthew Goetz, a former engineer who was previously working in investment management at Goldman Sachs for 11 years, and Ari Paul, a portfolio manager who oversaw risk at the University of Chicago’s endowment investment office. At the moment, they are the CEO and CIO of the company, respectively.