Are you a Bitcoin Trader? Wall Street Wants You! (or actually a hedge fund in san fran)
Are you a Bitcoin Trader? Wall Street wants you to join their ranks! Or rather, a San Fran Hedge Fund has posted a listing looking for a junior Bitcoin Trader
Maybe we will have a Wolf on Bit Street movie in the works soon (A bitcoin center opened up in wall street)
Bloomberg has taken that to mean that there is a senior trader!
Here is the Bloomberg Transcript (emphasis added in bold mine)
The first thing i thought when i thought was that they won a junior trader.
He must already have a senior trader.
I know that that got a lot of way.
It blew up on twitter.
People talked about it this morning.
For people who are involved in the bitcoin world, hedge funds have been part of the discussion for a while.
There is a lot of bitcoin meet ups here in new york.
There is always a good showing of hedge fund employees.
They are either trading for themselves or trying to find out more for the hedge fund.
There are stories about hedge funds that may be fantasy, but stories that took huge positions back when bitcoin was trading for one dime or a dollar.
Then you have the winkle vossen fault meant. [this refers to the Winklevii)
— the winkle vossen involvement — the winklevoss involvement.
There is still uncertainty around bitcoin.
We sell price fluctuations over the last couple of weeks.
All the better.
Huge price fluctuations is exactly what they are looking for.
Traders love nothing more than mad volatility.
That is exactly what you have seen with bitcoin.
The only problem really, that i can think of, that i cannot get my head around, is a lack of liquidity in this market.
Also, lack of exchanges.
There are no regulated exchanges.
They’re not exchanges that allow you to get in and out quickly.
For an execution trader, what you want is someone who will come in and take a big position and make a lot of trades throughout the day.
They will close the position before they go home.
You want to be flat overnight.
If you have read the stories about the bitcoin exchanges, sometimes it takes days to weeks to get your money off of those.
People are not lucky enough to get the money off at all.
It would be a difficult area.
We noticed quickly that the job posting actually had recently been scrubbed to erase all mention of bitcoin.
What do you make of that?
I cannot quite figure that out.
They did scrub it.
Somehow — the only thing i can think of is possibly that is a red flag for regulators.
They wanted to deal with that quickly.
We all saw it.
It has been on the internet.
This out there.
Matt miller, our expert, thank you.
We will be right back.
You can find a screencap of the original posting over at Business Insider!
Here’s The First Job Ad We’ve Seen For A Bitcoin Trader At A Hedge Fund
A San Francisco hedge fund is seeking a new junior trader. Applicants need strong analytical skills, the freedom to work irregular hours, and familiarity with Excel.
Oh, and they should also be cryptocurrency experts.
It’s the first job posting we’ve seen for a Bitcoin trader, and yet another sign that the financial world is taking virtual currencies seriously. Adam Besvinick, head of business development at Wanelo, tweeted the job posting, which will require the successful applicant to execute Bitcoin trades on exchanges and with private parties. (See image below.)
Bitcoin got a big vote of confidence last month when investors dumped $25 million into Coinbase, a wallet service that lets users buy and sell Bitcoin. But the cryptocurrency faced some challenges last month, too. A Chinese government crackdown caused a major downswing in Bitcoin’s value, and a similar crackdown quickly followed in India.
At the time of publication, Bitcoin is trading at $877 on Mt. Gox, the world’s largest Bitcoin exchange.
itcoin Trading: Wall Street’s Next Big Thing?
Updated from 10:01 a.m. ET to include Glocap comment.
NEW YORK (TheStreet) – If you couldn’t cut it trading exotic derivatives or bundles of subprime mortgage loans, maybe you’ll fare better in what could be Wall Street’s next growth area: Bitcoin trading.
On Thursday evening, Wall Street search firm Glocap listed a position for a “Junior Bitcoin Execution Trader” at a San Francisco-based hedge fund. The posting, sent out in an 8:22 p.m. email to subscribers, said “Our client, a San Francisco based hedge fund is seeking a junior trader to assist with Bitcoin execution, general fund operations, and reporting.”
By Friday morning, the listing had been amended to remove all references to Bitcoin. Anthony Keizner, a Glocap representative, said in an e-mail that the post was revised because “we felt on reflection that we’d be able to reach the right people and to assess candidate’s interest genuine interest in trading and trading ops the way the posting was written.”
The job listing didn’t mention the name of the hedge fund that’s hiring or its size. Dan Primack of Fortune reported on Thursday that Fortress Investment Group (FIG_) and San Francisco-based Pantera Capital are starting their own Bitcoin funds.
TheStreet has a copy of the original email sent out by Glocap, which might be insightful for anyone looking to become the first Gordon Gekko or “Wolf” of Bitcoin trading on Wall Street.
First off, don’t fret if you aren’t already a master of the universe when it comes to trading Bitcoins.
“Bitcoin and crypto currency knowledge a plus but not required,” the Glocap post originally stated.
My sense in reading Glocap’s original Bitcoin post is that the ideal candidate would be interested in traditional investing and finance, but also pliable and able to deal with the absurdities of trading Bitcoins, for instance their wild price swings and nebulous collateral. Qualifications for the role appear slightly less onerous and far more abstract than the typical job on Wall Street.
One will need to be “comfortable working with uncertainty” and have a “willingness to work with a brand new product without an, “industry standard.” In terms of mental makeup, the ideal trader should be “comfortable working on a volatile, illiquid, and new product.”
Hedge fund experience is a “plus” instead of a requirement, and all one would need to qualify is a Bachelor’s Degree in finance, accounting or economics with no stipulation about going to an elite university. The prestige thing can be a deal-breaker for many in getting their foot in the door on Wall Street.
“Intermediate-to-advanced” Microsoft (MSFT_) Excel skills will suffice. Familiarity with the mechanics of fund accounting is also listed as simply “a plus.” In terms of the non-Bitcoin economy, one only needs a “baseline understanding of financial markets.”
However, as with any gig on Wall Street these days, a Bitcoin trader is expected to “thrive in a fast-paced environment” and “exhibit a strong work ethic.”
Responsibilities include executing Bitcoin trades on exchanges and also bi-laterally with private counterparts. The execution trader would also have to manage the cash balances and settlements of their trading book on a real-time basis.
At major investment houses, execution traders are less glamorous than the proprietary traders who once garnered Wall Street’s biggest bonuses.
In interest rate, foreign exchange and credit trading businesses, execution traders normally are responsible for making markets and simply matching trading flows between customers seeking to buy or sell a specific product.
Generally, the goal is to open the day with minimal exposure to any specific currency, credit or interest rate level, trade as much as possible during market hours and then close trading day with a flat exposure to their product. Because less money is on the line, execution traders generally don’t have the Ivy League PhD’s that are a standard of proprietary trading roles at large banks and hedge funds.
All Wall Street traders have a small army of assistants to input trades into order-management systems, settle payments with their counterparts and manage the intra-day and daily profit and loss of their trading book.
My reading of the Bitcoin trading position, in its original version, is that an execution trader would be more of a one-man-band, transacting on trades and handling the operational paperwork as well.
Anyhow, here’s where to apply. The posting doesn’t mention the crypto-currency anymore, but trust me, this is a job for someone who wants to trade Bitcoins.
Bitcoin Becomes a Real Job and Wall Street Is Hiring
By Alec Liu
Wall Street wants in on Bitcoin. Image via YouTube
A San Francisco-based hedge fund is hiring a Bitcoin execution trader, in yet another sign of how seriously Wall Street takes cryptocurrencies—or possibly that the world is ending. No word on whether or not you get paid in bitcoins.
Adam Besvinick spotted the job ad and shared it on Twitter.
According to the job announcement, the firm is seeking a “junior trader to assist with bitcoin trading, general fund operations, and reporting.” As Business Insider’s Joe Weisenthal reports, “This is the first time we’ve seen this.” Weisenthal infamously ranted earlier this year that Bitcoin Has No Intrinsic Value, And Will Never Be A Threat To Fiat Currency and added further fuel to the fire during the currency’s most recent bubble, tauntingly proclaiming that Bitcoin Is a Joke. He’s since changed his mind and this fresh development should only further solidify his aboutface. The longer Bitcoin survives, the more converts it will continue to win over, with Wall Street being the latest arrival to the party.
Wall Street’s growing presence in the Bitcoin scene is a big deal because that’s where the money is, and not just their money, but the money the industry manages—in other words, everyone’s money. What this does is cement the status of cryptocurrencies as a brand new asset class; not quite a currency and not quite a commodity, but something totally new and unique. Notice I didn’t specifically say Bitcoin, but cryptocurrencies as a whole, which are now easier than ever to create. That includes Litecoin, Dogecoin, and the latest flavor of the week, the Kanye West coin. But this isn’t la la land, this is serious business.
Professional positions like this within established firms give Bitcoin an air of normality. When Wall Street gets involved, Bitcoin is no longer just the hobby of hackers or the movement of ideologues. Playing with cryptocurrencies becomes just another job; a boring career; a way to pay the bills and get corporate healthcare for you and the family. And for Bitcoin, boring is good. Credit cards shouldn’t be exciting, just convenient.
There have been hints that Wall Street would start putting some skin in the game after months of observing from the sidelines. The FOMO was surely strong after traders for the Bitcoin Fund bragged that they were the best performing fund in history. Last month, Bank of America Merrill Lynch started covering the crypto-money, releasing its first report on Bitcoin and even gave it a fair value of $1,300.
“We believe Bitcoin can become a major means of payment for e-commerce and may emerge as a serious competitor to traditional money transfer providers,” said the report, led by currency strategist David Woo. “As a medium of exchange, Bitcoin has clear potential for growth, in our view.”
Yesterday, Wall Street analysts Wedbush added their endorsement, noting that they “believe Bitcoin and its associated technology represent a potential disruption to our covered companies,” and adding that, “Bitcoin’s potential lies beyond the ‘coin’ as the underlying blockchain protocol can be used to replace traditional intermediaries by acting as an exchange mechanism for a multitude of transactions.”
Wall Street was also the location of Bitcoin’s New Year’s Eve party in New York the other day, when Steve Stockman, a Republican representative from Texas, promised to sponsor a pro-Bitcoin bill. 40 Broad Street down in the Financial District is the new home of Bitcoin Center. The Big (or should I say Bit?) Apple in general is becoming a hotbed for crypto-related happenings. BOND New York, a real estate brokerage firm just announced that it would start accepting Bitcoin as payment for real estate transactions. The litany of pro-Bitcoin news has helped push the price over $800 again on Mt. Gox. Bitcoin, it appears, is as resilient as ever.
The influx of more established financial players will inevitably help decrease Bitcoin’s price volatility, which currently prevents it from being a more useful currency. Expecting that in the short term, however, is probably still premature. More than half of bitcoiners expect its price to hit $10,000 in 2014, according to a CoinDesk poll. So much for stability. But of course, Wall Street wouldn’t be playing if there wasn’t money to be made.