BlockTower Buys Crypto Hedge Fund Gamma Point

BlockTower, a crypto hedge fund who recently raised $25 million for DeFi projects and assets, has now acquired one of its biggest competitors Gamma Point Capital.

article-image

Matthew Goetz is CEO/Managing Partner/Co-Founder at BlockTower

share
  • BlockTower has had prominent investors such as billionaire hedge-fund manager Marc Lasry and former U.S. Commodity Futures Trading Commission Chairman Christopher Giancarlo
  • The digital investment firm has raised $25 million to invest in DeFi projects and assets

Digital asset firm BlockTower Capital announced that it has acquired its rival Gamma Point Capital on Tuesday morning.

This is more than one of the investment firm’s big moves of 2021. The 12-person team also raised $25 million for decentralized finance (DeFi) projects, Blockworks reported in March. 

“This is an amazing milestone in our mission to build the #1 market-neutral fund for digital assets,” Gamma Point said in a statement on their website. 

The deal is valued at $35 million.

BlockTower was co-founded in 2017 by Ari Paul, who previously managed an endowment investment office at the University of Chicago, and Matthew Goetz, a former vice president at Goldman Sachs. 

Goetz is taking a “market neutral strategy”, adding that the digital asset firm should make returns regardless if it’s a bull or bear market, he said in an interview with Bloomberg. 

“We are probably in something like the seventh inning of this bull market,” he said. “It still has a ways to go. But I offer that very humbly, I don’t know if it’s six months or 12 months or 18 months to continue,” he added.

Paul also tweeted that he was “thrilled to welcome the Gamma Point team to the family.”

Former US Commodity Futures Trading Commission Chairman Christopher Giancarlo and billionaire hedge-fund manager Marc Lasry are among BlockTower’s most well-known investors. 

BlockTower did not respond to Blockworks’ requests for comment about the acquisition.

This story was updated on June 9, 2021, at 9:36 am EDT.

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates (8).png

Research

Kinetiq has established itself as Hyperliquid's dominant liquid staking protocol, holding 82.5% of LST market share with $610M in TVL. The protocol is now expanding beyond its kHYPE staking core into higher take-rate verticals: iHYPE for institutional custody rails, Launch for HIP-3 capital formation, and Markets for builder-deployed perpetuals. We view Markets, launching Jan. 12, as the highest-potential product line given its mechanically scalable, activity-linked unit economics. Near-term revenue remains anchored by kHYPE's KIP-2 fee schedule (~$1.6M annualized), while Markets provides embedded optionality if HIP-3 economics normalize post-Growth Mode. KNTQ's setup is relatively clean: zero insider unlocks until November 2026, 6.2% buyback yield from staking revenue, and cleared airdrop overhang. Risks center on unproven Markets execution, declining kHYPE TVL despite ongoing incentives, and competition from Hyperliquid's native initiatives.

article-image

BTC finished the week up 1.6%, while L2s, RWAs and the treasury trade continued to grind lower

article-image

DTCC moves DTC-custodied Treasuries onchain via Canton, while Lighter’s LIT launches trading at a fees multiple in Hyperliquid territory

article-image

In the 90s, rapt audiences worldwide watched a coffee pot — will that fascination ever turn to crypto?

article-image

Some systems improve by failing — and crypto has no choice

article-image

Yield Basis introduces an IL-free AMM design that already dominates BTC DEX liquidity

article-image

Maybe tokenholders don’t need the rights that corporate shareholders have come to expect

Newsletter

The Breakdown

Decoding crypto and the markets. Daily, with Byron Gilliam.

Blockworks Research

Unlock crypto's most powerful research platform.

Our research packs a punch and gives you actionable takeaways for each topic.

SubscribeGet in touch

Blockworks Inc.

133 W 19th St., New York, NY 10011

Blockworks Network

NewsPodcastsNewslettersEventsRoundtablesAnalytics