UK-based hedge fund Brevan Howard is expected to invest in cryptocurrencies after reallocating 1.5% of its portfolio to the new asset class
Brevan Howard Asset Management, the UK hedge fund, will start investing in cryptocurrencies. This is because more traditional financial institutions want exposure to Bitcoin and other digital assets.
Sources close to the matter told Bloomberg that the hedge fund is poised to invest 1.5% of a $ 5.6 billion portfolio in cryptocurrencies. The sources added that the investment, referred to as the “initial allocation,” will be led by Johnny Steindorff and Tucker Waterman, the co-founders of Distributed Global, a cryptocurrency investment firm.
Brevan Howard has been around since 2002 and is one of the world’s largest macro hedge funds. The company had more than $ 40 billion in assets under management in 2013. However, over time, its holdings declined and it had around $ 10 billion under management by September 2020.
The hedge fund was founded by Alan Howard, a popular British billionaire who has invested heavily in the cryptocurrency space in recent years. Last month, Alan Howard became the fourth largest shareholder in CoinShares, Europe’s largest crypto asset manager. He took control of more than 8% of the company through AH (St Helier) Limited – a Jersey unit owned by Howard.
He also owns Elwood Asset Management, an investment firm founded in 2018 that is heavily focused on cryptocurrencies and blockchain technology. Howard has also invested in several other crypto projects in recent years. He is also affiliated with One River Asset Management hedge fund, which is estimated to hold over $ 1 billion in BTC and ETH.
Brevan Howard’s entry into the cryptocurrency space continues a newer tradition in which several traditional financial institutions have invested in digital currencies. Commercial banks, investment banks, hedge funds, insurance companies, pension funds, and a few others have dipped their toes into the crypto room. Investments are expected to grow massively in the coming years.