At a time when Wall Street executives leaving for a crypto gig seems rare, the former CEO deputy and chief operating officer of the investment research department at Bridgewater Associates has joined crypto investment management firm BlockTower Capital.
(Bloomberg) — At a time when Wall Street executives leaving for a crypto gig seems rare, the former CEO deputy and chief operating officer of the investment research department at Bridgewater Associates has joined crypto investment management firm BlockTower Capital.
Diana Zhang, 39, has become BlockTower’s first chief operating officer after spending about 15 years at Bridgewater, Ray Dalio’s $150 billion investment-management firm. During Bitcoin’s bull run it was common for Wall Street execs to join crypto startups, but in recent months crypto leaders have been ditching the industry for more stable traditional finance jobs.
While the world’s largest cryptocurrency by market value is up about 79% so far in 2023, it is still at less than half of its record high of nearly $69,000 as regulatory uncertainty continues to pressure coin prices and the industry heals from a string of bankruptcies.
“Joining BlockTower in the late innings of crypto winter was an incredibly attractive opportunity — I would have actually been nervous about jumping into the industry at the height of the bull cycle when things felt so frothy,” Zhang said in an interview. “But here was a long-established firm that was still standing strong after crypto’s Lehman moment and well-positioned to take advantage of the new playing field.”
Most recently, Zhang was a Bridgewater “executive on loan” who created nonprofit NeighborShare, which connects people in need with local community service providers and organizations. Prior to going on the sabbatical she helped build out Bridgewater’s investment research department of 200-plus people and its internal talent program. After leaving Bridgewater in October, Zhang joined Miami-based BlockTower in February.
BlockTower was started six years ago by Ari Paul, a portfolio manager for University of Chicago, and former Goldman Sachs Vice President Matthew Goetz. In March, the firm, with a total staff of about 30 people, opened an office in New York City, Goetz said in an interview.
Zhang, who is based in Miami, joins a number of recent new hires including Danny Goodman, former vice president of finance and strategy at bankrupt miner Core Scientific Inc., and Ryan Silva, former senior portfolio manager at lender Celsius Network, which went bankrupt last year. BlockTower also hired Kevin Miao, previously vice president of structured products trading at Citigroup, as its head of credit.
“You don’t build an enduring, category-defining firm without investing in world-class executive management,” Goetz said.
Earlier this year, the company wound down a “market-neutral” crypto fund that at one point oversaw more than $100 million. The firm, which has had a venture fund since last year, is now also investing in making it possible for traditional assets like bonds to trade using efficiencies of blockchain technology, Goetz said.
“We are looking at growth opportunities in several forms — investment strategies, franchises, people, technology, even new companies,” Goetz said.
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