Key Takeaways
- • BlockTower Capital, co-founded by former Goldman Sachs investment manager Matthew Goetz, expanded headcount from approximately 8 employees at the start of 2018 to 13 people and opened a second office in New York last month, signaling confidence despite a 52 percent decline in cryptocurrency hedge fund performance year-to-date.
- • The firm is launching a new venture capital strategy, likely with dual investment capability in startup equity and digital tokens, with Eric Friedman recruited from Expa to lead the initiative.
- • Recent hires include talent from major financial institutions: Siyu Dai (quantitative trader from Bank of America Merrill Lynch and Nomura), Steve Lee (former Tokyo and Singapore-based Goldman Sachs trader), and Corey Miller (from venture capital firm Scout Ventures), indicating BlockTower's ability to attract experienced institutional talent despite sector headwinds.
- • Crypto hedge funds collectively posted a 52 percent loss in 2018 compared to Bitcoin's 54 percent decline, yet 96 new hedge funds and venture funds launched in 2018 versus 156 in 2017, demonstrating continued market entry despite significant losses.
- • BlockTower Capital was co-founded with Ari Paul, who previously oversaw risk management at the University of Chicago's endowment investment office, providing institutional-grade risk infrastructure to the fund.
Summary
BlockTower Capital, a cryptocurrency hedge fund co-founded a year ago by former Goldman Sachs investment manager Matthew Goetz, is expanding its operations aggressively despite severe market headwinds. The firm increased its headcount from approximately 8 employees at the start of 2018 to 13 people and opened a second office in New York last month, according to Bloomberg reporting. The Stamford, Connecticut-based fund's expansion demonstrates continued institutional commitment to cryptocurrency markets even as the sector faces significant pressure.
The cryptocurrency hedge fund sector has experienced substantial losses in 2018. According to the Eurekahedge Crypto-Currency Hedge Fund Index, crypto hedge funds are down 52 percent year-to-date, compared with Bitcoin's 54 percent decline. Despite these losses, market entry continues with 96 hedge funds and venture funds launching in 2018, compared with 156 in all of 2017, signaling neither capitulation nor unchecked enthusiasm.
BlockTower's expansion includes a new venture capital strategy designed to invest in both startup equity and digital tokens, led by Eric Friedman, who joined from startup incubator Expa. The investment team additions reflect deliberate talent recruitment from institutional finance: Siyu Dai, a quantitative trader and algorithm developer previously at Bank of America Merrill Lynch and Nomura; Corey Miller, recruited from venture capital firm Scout Ventures; and Steve Lee, a former Goldman Sachs trader based in Tokyo and Singapore. BlockTower's co-founder Ari Paul brings institutional credibility, having previously managed risk at the University of Chicago's endowment investment office.
The hiring pattern at BlockTower reflects broader Wall Street engagement with cryptocurrency, with major financial institutions increasingly recruiting specialized digital asset talent. Jessica Schaefer, BlockTower's spokeswoman, confirmed the office expansion and staffing growth, validating the firm's operational trajectory despite the 2018 market collapse.
The cryptocurrency hedge fund sector has experienced substantial losses in 2018. According to the Eurekahedge Crypto-Currency Hedge Fund Index, crypto hedge funds are down 52 percent year-to-date, compared with Bitcoin's 54 percent decline. Despite these losses, market entry continues with 96 hedge funds and venture funds launching in 2018, compared with 156 in all of 2017, signaling neither capitulation nor unchecked enthusiasm.
BlockTower's expansion includes a new venture capital strategy designed to invest in both startup equity and digital tokens, led by Eric Friedman, who joined from startup incubator Expa. The investment team additions reflect deliberate talent recruitment from institutional finance: Siyu Dai, a quantitative trader and algorithm developer previously at Bank of America Merrill Lynch and Nomura; Corey Miller, recruited from venture capital firm Scout Ventures; and Steve Lee, a former Goldman Sachs trader based in Tokyo and Singapore. BlockTower's co-founder Ari Paul brings institutional credibility, having previously managed risk at the University of Chicago's endowment investment office.
The hiring pattern at BlockTower reflects broader Wall Street engagement with cryptocurrency, with major financial institutions increasingly recruiting specialized digital asset talent. Jessica Schaefer, BlockTower's spokeswoman, confirmed the office expansion and staffing growth, validating the firm's operational trajectory despite the 2018 market collapse.
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