Cryptocurrency Hedge Fund BlockTower Raises $140 Million

BlockTower Capital, a digital currency hedge fund launched in August, raised $140 million and hired a former vice president at Goldman Sachs Group Inc., expanding its team to eight people, according to people familiar with the matter.

The money manager, which is based in Stamford, Connecticut, has raised capital from family offices and other institutions such as venture capital firms, the people said.

Union Square Ventures LLC and Andreessen Horowitz separately said they are investors and declined further comment. BlockTower declined to comment through a spokeswoman. The company recently informed investors that its flagship fund closed to new capital as of Jan. 1, according to an email viewed by Bloomberg News.

BlockTower said Thursday in a statement it hired Michael Bucella, who joined Goldman in 2008 and most recently worked in multi-asset sales for Canada, as head of strategic partnerships and business development. Bloomberg earlier reported the appointment.

BlockTower’s launch comes amid an outpouring of interest in cryptocurrency markets, fueled by the explosive appreciation of bitcoin, which soared to a high of $18,674 in December from less than $1,000 at the end of 2016. There are now about 100 crypto-focused funds with assets of more than $2 billion, with more growth expected this year, according to a Dec. 18 report from Morgan Stanley…

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