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

key takeaways

  • 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

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

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.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Research Report Templates.png

Research

Maple Finance has successfully navigated significant market challenges through its strategic pivot to secured lending (Maple v2) and the launch of its Syrup product. Syrup has become a primary growth driver, delivering sustainable, outperforming stablecoin yields and rapidly increasing TVL. The upcoming custody-first Bitcoin staking product (istBTC) presents another significant avenue for expansion. Crucially, Maple has achieved operational profitability, a key inflection point that, combined with a fully vested token and active buyback mechanism, strengthens its investment case. While valuation metrics suggest potential undervaluation relative to peers and growth, the primary forward-looking risk identified is the long-term sustainability of its current high-take-rate collateral staking revenue model.

article-image

Funds disagree about which metrics matter, but agree fundamentals are key

article-image

PGP creator Phil Zimmermann’s connection with Bitcoin is complicated

article-image

Blockworks spoke with a dozen current and former employees about the problems that have plagued Bitget’s blockchain, Morph

article-image

Perpl, a perps DEX, plans to launch testnet by the end of this year

article-image

A recent Citi report predicted that stablecoin AUM could hit $3.7 trillion by 2030, largely because of institutional adoption

article-image

The startup hopes to reduce crypto’s reliance on AWS and Google Cloud