A spokeswoman for the firm declined to comment. “It’s too early to say what paths we will ultimately pursue and when,” the letter said. “We look forward to updating you when we have concrete plans on how we expect to approach this market.” (Adds other firms interested in Bitcoin in fourth paragraph, Elon Musk comments in fifth paragraph.)
Still, the space has been volatile. Bitcoin tumbled after crypto champion Elon Musk tweeted Wednesday that Tesla Inc. would no longer accept it as payment for its cars. He also expressed concern about the “increasing use of fossil fuels for Bitcoin mining and transactions.” Meanwhile, the world’s biggest cryptocurrency exchange, Binance Holdings Ltd., is under investigation by the Justice Department and Internal Revenue Service as the U.S. seeks to root out illicit activity in the market. Money managers have been increasingly interested in the sector amid Bitcoin’s rise and optimism about the potential of blockchain technology. Point72 rival Millennium Management has been active in crypto-related futures and ETFs, including the Grayscale Bitcoin Trust, and plans to continue in the space, according to a person with knowledge of the matter. Harvard University, Yale and other college endowments recently begun buying cryptocurrency directly on exchanges, CoinDesk reported.
Point72 may make the wagers under its Point72 Private Investments unit or its hedge fund, and will examine “liquidity, risk, and return profiles,” according to the letter. The letter came after a report Thursday from cryptocurrency-focused website The Block, which said Point72 was poised to make a sizable move in the space.
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