Republic Acquires Crypto Subsidiary From GoldenTree

GoldenTree Asset Management, spearheaded by hedge fund manager Steven Tananbaum, has made headlines with its recent decision to divest its crypto subsidiary. As reported by Bloomberg, the firm sold its crypto subsidiary to Republic, a prominent digital asset investment firm, in a move that underscores shifting dynamics within the cryptocurrency industry.

GoldenTree Strategically Repositions Itself

By offloading its crypto arm to Republic, GoldenTree is strategically repositioning itself to focus on its core business operations while tapping into Republic’s expertise in the digital asset space. Meanwhile, the reports revealed that the acquisition only changes ownership, not the fund itself.

Joe Naggar, previously a partner at GoldenTree, has become the chief executive officer (CEO) and chief investment officer (CIO) of Republic Digital, a newly formed company under Republic.

For Republic, GoldenTree’s crypto subsidiary acquisition represents a significant expansion of its portfolio and capabilities. With an increasing number of traditional financial institutions and investors venturing into the cryptocurrency market, Republic’s move to acquire GoldenTree’s crypto arm aligns with its strategic vision to capitalize on the growing demand for digital asset investment opportunities.

Assets Managers Diversify Portfolio to Include Digital Assets

As reported by TheCoinRise last year, one-fourth of asset managers and hedge funds in the United States, the United Kingdom, and Europe are hiring senior executives to lead their digital asset investment strategies. Also, the report confirmed that about 24% of these organizations have already adopted a digital asset strategy, while another 13% plan to do so within the next two years.

The focus was to “better understand how institutions implement digital assets, including investment strategies, products, data, and technologies to support the asset class.” Surprisingly, the report comes amidst a progressive effort of U.S regulators, including the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) to crack down on crypto activities.

Crypto Firms Record Victory Against U.S. Regulators

It’s essential to acknowledge the recent successes of crypto-related entities against regulators. Recall that Ripple Labs, achieved a partial victory against SEC when Judge Analisa Torres ruled that XRP is not a security. Also, Grayscale won a crucial court battle against the SEC over its application for a spot Bitcoin exchange-traded fund (ETF).