Bitcoin Boom Validates Wall Streeters Who Jumped Into Crypto

Photographer: Paul Yeung/Bloomberg

(Bloomberg) -- After years of education and hard work at top Wall Street firms, some professionals decided to explore the realm of cryptocurrency. Despite the risks, including a significant industry downturn marked by the FTX collapse and Bitcoin's drop below $16,000, these individuals ventured into the crypto market.

Their career change was once questioned by peers and family alike. However, the recent surge in Bitcoin's price has reaffirmed their decisions. Notably, Donald Trump’s election in November catalyzed a rise in crypto prices, giving a newfound validation to those who transitioned from high-paying Wall Street roles to the unpredictable world of cryptocurrency.

"The spotlight’s back on," stated Vivek Raman, who is developing a company called Etherealize to merge Wall Street with the Ethereum ecosystem. His journey began after a decade of trading credit at prestigious firms such as Morgan Stanley, UBS, and Deutsche Bank. Raman took a steep pay cut to join the blockchain sector, driven by a belief in its potential—questioning why traditional bonds weren’t traded on blockchains.

Others, like Patrick Liou, have faced trials during the crypto downturn. A former trader at BlackRock, Liou described the crypto winter as "a disaster." He admits there were moments of self-doubt, considering a return to a stable traditional finance job. Now as a principal at Gemini, he reflects on a time when telling others about his career in crypto was awkward.

They are not alone in finding reassurance. The gradual acceptance of crypto into mainstream finance, marked by the launch of crypto ETFs that attracted institutional investment from firms like BlackRock and Fidelity, has made many feel more secure in their new paths.

Despite surging confidence, veteran crypto workers remain cautious. Zach Pandl, who left Goldman Sachs to become the head of research at Grayscale Investments, mentions that while he welcomes portfolio gains, he is not rushing to buy luxury items like a Lamborghini.

The excitement in the industry is palpable, as indicated by Michael Harvey, a former TradFi professional who joined crypto-firm Galaxy in 2023. Harvey received a bottle of Johnnie Walker Blue Label from a colleague, which now symbolizes both celebration and restraint.

Recently, Bitcoin soared past $100,000, breaking records amid optimism over a favorable regulatory environment and an overall risk-on market sentiment. Though the price has fluctuated, it remains significantly higher than last year’s lows.

The year closes on a high note for these crypto enthusiasts, and for many, it inspires plans to celebrate with drinks and hope for further successes in the future.

Bitcoin, Crypto, WallStreet