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Brevan Howard intends to diversify into various digital assets beyond Bitcoin and Ethereum.
Brevan Howard, an asset management firm with approximately $10 billion in AUM, is reportedly eyeing the crypto market, according to a report by Bloomberg. Bloomberg reported that the firm hedge fund is ready to invest 1.5% of a $5.6 billion portfolio into cryptocurrencies.
Notably, the cryptocurrency investment dubbed ‘initial allocation’ will be headed by Johnny Steindorff and Tucker Waterman, co-founders of Distributed Global, a cryptocurrency investment firm. Distributed Global has made significant investments in various blockchain startups in the past.
Brevan Howard and the Crypto Industry
Alan Howard, the co-founder of Brevan Howard Asset Management and Elwood Asset Management, has in the past invested in blockchain and cryptocurrency-related startups. Earlier last month, digital asset custodian Komainu announced the closure of a $25 million Series A funding round led by the billionaire Alan Howard. “With over $3 billion in assets under custody, Komainu has become one of the leading digital assets custodians globally. I am pleased to support Komainu in its mission to bridge the gap between legacy finance and the digital assets class,” Howard noted.
The billionaire has made considerable progress in the cryptocurrency industry owing to the fact that he began investing years ago. Late last year, Alan backed One River Digital Asset Management’s $1 billion bets on crypto, particularly Bitcoin and Ethereum.
However, the Brevan Howard hedge fund has seen its assets under management declined from over $40 billion to around $10 billion as of last year.
Founded back in 2002, the firm has gone through several market ups and downs and in turn, gained experience over time. Choosing the cryptocurrency industry over the traditional stock market is an indication of the increasing digital assets’ demand by institutional investors.
Furthermore, digital asset investments have shown better resilience during the global coronavirus crisis than the traditional stock market or the precious metal industry.
Notably, Brevan Howard operates a number of funds, including two publicly available closed-end funds: BH Global (LSE: BHGG) and BH Macro (LSE: BHMG).
Brevan Howard intends to diversify into various digital assets beyond Bitcoin and Ethereum. The move is likely to attract more institutional investors amid the ongoing bull market that has attracted more retail traders.
A huge wave of retail investors have jumped into the cryptocurrency market through various means, but Dogecoin has surpassed other projects in the past few days. On the side of institutional investors, Bitcoin has been a better investment due to low volatility in the past few months.