A new report suggests that some of the world’s wealthiest individuals are quietly buying bitcoin during the prolonged bear market. With prices at a one-year low, billionaires are reportedly accumulating bitcoin and waiting for the next bull run.
The report comes from Abacus Journal, which states that billionaires and their hedge funds have been accumulating crypto over the last few months.
Now, take this news with a grain of salt: Abacus Journal, formerly known as ICO Journal, is an online blog with a history of finding the perfect sources at the perfect times. The blog is either the best-connected blog in the crypto space or they tend to fabricate certain information.
In Abacus Journal’s latest report, they claim to have contacted a source involved with billionaire hedge fund manager Steven Cohen. That source claims Cohen, who is famous for successfully managing fiat hedge funds, has launched a new hedge fund to invest in crypto:
“The investment was made through his Cohen Private Ventures, said the person, who asked not to be named because the information is private. The hedge fund, Autonomous Partners, was started last year by Arianna Simpson, an early advocate of cryptocurrencies. It has also secured investments from Union Square Ventures, Coinbase Inc. Chief Executive Officer Brian Armstrong and Craft Ventures Co-Founder David Sacks,”
Simpson said in an interview Thursday.
Cohen rose to notoriety in the hedge fund space for outwitting several major U.S. government agencies while they pursued him for insider trading and securities fraud. After years of successfully running fiat hedge funds, Cohen is apparently directing his energy towards crypto funds.
Abacus Journal claims that the investment in crypto by Cohen Private Ventures was a personal decision led by Cohen. In fact, all investments made by Cohen Private Ventures are led by Cohen alone.
“This was Cohen making a personal commitment to the crypto space and attempting to do it at just the right time so as to maximize his personal returns,”
explains Abacus Journal.
Billionaire Bill Miller Is Also Allegedly Buying Bitcoin
Abacus Journal also claims that billionaire Bill Miller may be buying bitcoin. Miller had originally claimed to be merely a “bitcoin observer” but has recently admitted to investing in bitcoin both personally and through a partnership portfolio. Miller claimed to be buying bitcoin in an interview with Bloomberg.
“He recognized the nascent nature of the market, declaring that no one knows how the asset will end up,”
explains Abacus Journal.
Here’s how Miller explained his stance towards bitcoin in the interview with Bloomberg:
“I think that it’s an interesting technological experiment. Every day that it doesn’t blow up or get regulated to zero, what’s going to happen is that more money flows into the ecosystem.”
Miller also praised bitcoin for its much-coveted “alpha”, which means bitcoin isn’t correlated with other traditional markets. Investors who buy bitcoin may be able to insulate their portfolio from broader market swings and movements.
Miller and Cohen obviously aren’t the only billionaires who own bitcoin. We already know billionaires like hedge fund manager Mike Novogratz and Ethereum co-founder Joseph Lubin own bitcoin, for example. Clearly, these billionaires believe that the future of crypto is bright – and it remains to be seen how many other billionaires worldwide are quietly accumulating bitcoin while the market is in a downturn.