$ 45 billion asset manager GoldenTree buys Bitcoin

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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 company has added Bitcoin to its track record as a diversifier for the wide array of debt-focused strategies it has pursued for years, according to two sources with knowledge of the matter. The sources were granted anonymity to discuss sensitive business relationships.

GoldenTree executives have had conversations in recent months about hiring new staff with expertise in the investment and operational aspects of crypto investing, one of the sources said.

GoldenTree’s existing partners have expertise in crypto trading and making VC-like investments in blockchain companies, the source added.

Indeed, Tannabaum, along with its partners Deeb Salem and Joseph Naggar, personally supported a funding round in early July for Borderless Capital, which focuses on the Algorand ecosystem. A source added that a GoldenTree sponsor has a significant existing investment in Algorand.

It is not known when GoldenTree first took hold of bitcoin or to what extent the operation is actively trading the world’s first cryptocurrency. The indications are that, at this point, GoldenTree has been limited to bitcoin exclusively internally, compared to other types of crypto.

It should be noted, however, that GoldenTree updated its documents with the SEC in April to allow the acquisition and trading of a wide range of cryptocurrencies and to invest in blockchain-based applications.

The update gives GoldenTree a mandate to put its sponsor money into decentralized finance (DeFi), protocol tokens and other “distributed ledger” technologies. In a list of risks associated with investing in crypto, the company noted that regulation could have a significant impact on its investments going forward.

“Although cryptocurrency is generally not currently regulated as a currency, security or similar asset / instrument in the United States, it has attracted the attention of US regulatory agencies and future regulation is likely,” wrote GoldenTree.

The company operates hedge funds, private credit and private equity vehicles, in addition to offering separately managed accounts to a mix of institutional sponsors.

Other significant asset managers who are investing or looking to 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 company has added Bitcoin to its track record as a diversifier for the wide array of debt-focused strategies it has pursued for years, according to two sources with knowledge of the matter. The sources were granted anonymity to discuss sensitive business relationships. Subscribe for the full article

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