Billionaire Steven A. Cohen, hedge-fund manager and owner of the New York Mets, has agreed to make an initial investment in Radkl, a new cryptocurrency trading firm, reports The Wall Street Journal. Radkl launched September 14th and will be run by a team from high-speed trading firm GTS.
The size of Cohen’s investment isn’t known, but it comes from his personal capacity, not via his hedge-fund Point72 Asset Management LP. It’s one of several investments into crypto that Cohen has made in recent months, praising the potential of the underlying blockchain technology.. He’s not alone: many billionaires such as Paul Tudor Jones and Stanley Druckenmiller have embraced crypto, the article contends.
But the rocket-fire growth of crypto has drawn regulatory scrutiny from the SEC, which warns that crypto markets are riddled with fraud and that new legislation is needed to fill gaps in the oversight of digital assets.
Radkl will be active in decentralized finance (DeFi) and engage in several types of trading, including electronic market-making on crypto exchanges and bilateral trades of digital assets with other firms. The new firm expects to have about two dozen employees by the end of this year.
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