Exclusive: Veteran Blockchain VC Backer Tiger Global Gets Into Crypto Trading
- Tiger traded decentralized finance protocols including Filecoin
- The company, founded in 2001, invests in public and private companies
Tiger Global, long known for making winning bets on private blockchain startups, has for the first time started actively trading cryptocurrencies, according to two people familiar with the matter.
One of the largest and oldest hedge fund firms in the world, Tiger joins a growing number of top asset managers seeking alpha in inefficient crypto markets. The company started trading cryptos in recent months, the sources said.
The sources were granted anonymity to discuss sensitive business transactions. A representative for Tiger, which manages $90 billion in assets across its hedge funds and venture capital vehicles, declined to comment.
Given the success of Tiger’s private crypto games, trading liquid tokens could be a big growth area for the New York-based company down the line. Indications are that Tiger has been treading lightly in space as its limited institutional partners — including some of the largest pension funds and endowments — are only slowly preparing for digital assets as a core position in their portfolios.
“Tiger isn’t rushing, but I’m honestly surprised they haven’t made the move sooner,” a source said. “They certainly have the connections to understand their private company space. It’s just a matter of bringing in the right people for trading.
It’s unclear if Tiger is getting into digital assets through its flagship fund or if the company has considered creating vehicles to trade crypto outright. The latter stance would align Tiger with peers including Brevan Howard, who Blockworks said was on the verge of raising hundreds of millions of dollars for his first crypto fund.
Tiger’s flagship fund, led by founder Chase Coleman, focuses on fundamental, long and short bets on stocks.
In addition to exploring well-known cryptocurrencies such as bitcoin and ether, Tiger has been investing in decentralized finance (DeFi) protocols, including Filecoin, as the firm considers investment prospects of Web3, sources said.
Filecoin – which has a market capitalization of just $3 billion, according to Coingecko – issues tokens to users who provide storage space for the network. Its goal is to bring together a set of data, including Creative Commons assets and historical records, indexable and searchable via blockchain technology.
Tiger has backed dozens of crypto startups including Blockdaemon, BlockFi, FTX, Livepeer, Moonpay, and TRM Labs.
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