Coinbase Acquires One River Digital to Expand Institutional Access to Crypto Assets

March 4, 2023 Bitcoin.com

Coinbase announces acquisition of One River Digital Asset Management

March 3, 2023 Coin Telegraph

Business

As part of the acquisition, Coinbase said One River Digital’s team would join the exchange and CEO Eric Peters would stay to lead the firm under the name Coinbase Asset Management.

United States-based cryptocurrency exchange Coinbase has acquired cryptocurrency-focused hedge fund One River Digital Asset Management, or ORDAM.

In a March 3 blog post, Coinbase said One River Digital will transition to become Coinbase Asset Management, “an independent business and wholly-owned subsidiary” of the crypto exchange. One River Digital is registered as an investment adviser under the U.S. Securities and Exchange Commission, and has previously accepted investments from Coinbase to scale its operations.

“Coinbase and ORDAM share an ethos grounded in prudent risk management, a trait which has enabled both firms to successfully navigate the recent market turmoil,” said Coinbase. “Culturally, our two organizations are strongly aligned on pursuing the opportunity in digital assets with an uncompromising priority on safety and soundness.”

As part of the acquisition, Coinbase said One River Digital’s team would join the crypto exchange and chief executive officers Eric Peters would stay on as leader under the rebranded firm. The exchange suggested “minimal disruption to current business activities” amid the transition.

News of the acquisition followed Coinbase leading the charge in a slew of crypto firms cutting ties with Silvergate amid reports the bank was under investigation from the U.S. Department of Justice over its alleged involvement in the collapse of FTX. The crypto exchange has already announced Signature Bank will take over institutional client cash transactions for its prime customers.

Fund Manager One River Files SEC Prospectus for Carbon Neutral Bitcoin ETF

May 25, 2021 Bitcoin.com

Jay Clayton Joins Bitcoin-Rich Asset Management Firm

March 30, 2021 The Crypto Briefing

Former SEC chair Jay Clayton has joined the advisory council of One River Digital Asset Management, a digital asset investment firm.

Clayton Now Advisor at Crypto Company

Jay Clayton, who served as chair of the U.S. Securities and Exchange Commission between May 2017 to December 2020, has taken advisory roles at multiple firms.

Most recently, he has been appointed to the advisory council of One River Digital Asset Management, a prominent crypto investment firm.

Clayton said about One River CEO Eric Peters: “We were impressed by Eric’s willingness to hear our varying views on the digitization of our monetary, banking, and capital markets ecosystem and One River’s commitment to transparency.”

Clayton is regarded as one of the crypto industry’s top villains because the SEC declined to approve Bitcoin ETFs under his leadership. Under Clayton, the SEC also made it harder for startups to run ICOs and most other types of initial tokens sales.

However, Clayton’s willingness to work with Bitcoin-adjacent firms should not be entirely surprising, given that he stated that Bitcoin is not a security in 2018. Unlike other cryptocurrencies, Bitcoin never went through an ICO or any other fundraiser.

Along with serving on One River’s advisory council, Clayton will rejoin his former law firm Sullivan & Cromwell LLP as a policy council advisor. He will also act as non-executive Chair of Apollo Global Management Inc. and serve as Adjunct Professor at the University of Pennsylvania Carey Law School.

One River’s Cryptocurrency Bet

Prior to the economic crisis resulting from the response to COVID-19, One River CEO Eric Peters focused his strategy based on volatility, bringing in returns of around 35% in 2020.

The firm has made significant investments in Bitcoin. In November, it announced a $600 million Bitcoin purchase. In recent statements, Peters additionally confirmed that One River plans to increase its Bitcoin and Ethereum holdings to $1 billion in the first half of 2021.

One River has also received financial backing from the Brevan Howard Asset Management Fund and Ruffer LLP.

At the time of writing this author held Bitcoin and less than $15 of altcoins.

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