The author of an investment newsletter said Wednesday that he will help a major digital assets fund open its New York office at the beginning of November. The announcement follows news in September that former Fortress hedge fund manager Michael Novogratz plans to launch a similar $500 million fund.
Paul Brodsky was an options trader in the 1980s, helped found a mortgage trading broker-dealer that was sold to Piper Jaffray in 1994 and began managing assets for investors in 1996, according to Brodsky's website. He launched his Marco Allocation newsletter on market analysis in 2015.
The newsletter took a different tone Wednesday. "It has become increasingly obvious to me that blockchain-based investing presents unparalleled risk-adjusted secular returns," Brodsky said in a note to subscribers. He will become a partner at California-based Pantera Capital.
Digital asset investments over time (in $ millions)
Source: Autonomous Next analysis, Pitchbook data
At least 75 "crypto-funds" have launched to invest in digital currencies such as bitcoin and projects based on the blockchain technology behind them, according to financial research company Autonomous Next.
Pantera is one of the oldest funds in the digital assets world. The company says it became the first U.S. fund to invest in bitcoin in 2013.