Hedge Fund BlockTower Capital Allegedly Made $1 million Bet on Bitcoin
A few days ago it has been revealed that an undisclosed investor made a very interesting and unexpected bet. The investor, whose identity was not revealed, decided to bet $1 million on the fact that the price of bitcoin will reach $50,000 at the end of December, 2018.
Now, Business Insider revealed that this undisclosed investor is actually hedge fund BlockTower Capital. The media outlet revealed that some people familiar with the matter confirmed that BlockTower Capital was the investor who made a $1 million bet on Ledger X, an exchange for cryptocurrency options.
The main idea of the bet made by the hedge fund is that if the price of bitcoin will reach the expected amount on December 28, BlockTower Capital will be able to buy 275 bitcoins at $50,000 each. However, the money will be lost if the price of bitcoin does not grow to $50,000.
BlockTower Capital did not confirm the rumors
For the moment, BlockTower Capital has not commented on the report issued by Business Insider, so it is yet to confirm if indeed it is the investor. However, what is interesting to mention at this point is that the founder of the hedge fund, Ari Paul, shared a message regarding the bet on his Twitter page. "I wonder who bought these," his message said, also including a link to the initial reporting of the story by the Wall Street Journal. He also posted:
“One thing to understand with options: a deep out of the money call is not a bet that something *will* happen, it’s a bet that something *might* happen. Risk a little to win a lot.”
I wonder who bought these? 😉 https://t.co/gIXFW0d0hm
— Ari Paul (@AriDavidPaul) December 21, 2017
BlockTower Capital includes more than 175 firms and has become one of the most popular crypto hedge funds. The hedge fund was founded by Ari Paul along with Matthew Goetz, who used to be the vice president of Goldman Sachs.
If the bet will be successful or not is something that will only be discovered next year. However, it is important to mention that in the past few days the price of bitcoin has not been at its best so far. In fact, it experienced a notable decrease, but several analysts claimed that investors should not lose their faith in the cryptocurrency yet.
Several analysts stated that the price of bitcoin will most likely rebound after the winter holidays.
