Crypto Funds Hunt for Wall Street Veterans
Since major financial institutions are looking for new employees lately, crypto-related firms are more than happy to snatch up Wall Street veterans for their projects, CNBC reported.
Pantera Capital, a blockchain investment fund, announced on Tuesday they had hired former Deutsche Bank managing director William Healy as president as of March 1st. According to CNBC, “the Wall Street veteran co-founded Deutsche Bank's Hedge Fund Priority Client group and was a key player in establishing the German bank's U.S. hedge fund strategy.”
In a statement, Healy said that this is a transformative time, adding that, “the blockchain and digital currency environment today remind me of the inflection points in emerging markets and the alternative asset management industry to a more institutional management approach.”
On Monday, Reuters reported that the Deutsche Bank would be cutting at least 250 investment banking jobs in locations including London and the United States - although the figure could rise to as many as 500, according to a “figure familiar with the matter.” Another investment giant, Goldman Sachs is also experiencing an exodus of key players, since the firm is looking to overhaul a struggling commodities unit.
Pantera's first fund was up 758.6% since its inception in 2013 through the end of last year. That portfolio includes companies that help buy and store bitcoin including Circle, Xapo and Bitstamp.
Support for Pantera’s fund is soaring: Dan Morehead, Pantera’s CEO, said his firm got 95 new limited investors in February alone - having needed 10 years to get the first 95 investors. The total number of hedge funds focused on crypto is now 226, having doubled in number in the past four months, according to estimates from research firm Autonomous NEXT.
Bitwise Asset Management, manager of the first cryptocurrency index fund, announced it will hire industry veteran Matt Hougan as Vice President of Research & Development. Hougan was CEO of Inside ETFs, the world's leading ETF (exchange-traded funds) education company, and before that CEO of ETF.com - creator of the world's first institutionally oriented, ETF-specific ratings and analytics service.
Spencer Bogart, partner at Blockchain Capital, a venture capital company, and investor in Bitwise, said, “As cryptoassets come into the mainstream, investors increasingly want access to rules-based beta options. Matt's expertise in indexing, exchange-traded products, and institutional research complements the team's expertise in software, and will help Bitwise continue to be a best-in-class partner to investors.”
Growing interest in crypto, ever since its December peak, combined with the expertise of Wall Street veterans could mean a winning combination for the new era of economy.