Brevan Howard Hedge Fund Forays Into Cryptocurrencies

Jafrin  |  Sep 13, 2021

British hedge fund Brevan Howard has formed a new division to manage cryptocurrencies and digital assets called BH Digital amid a growing interest in the nascent asset class.

Brevan Howard Hedge Fund Launches Crypto Unit

In addition to launching a new crypto division, Brevan Howard is appointing Colleen Sullivan, the CEO and co-founder of CMT Digital, to lead the company’s private and venture investment activities in crypto.

Since 2013, CMT Digital, (a CMT Group division), has been focused on crypto trading, blockchain investments, and legal or policy engagement in the industry. At Brevan Howard, Sullivan will be heading an investment committee focused on crypto technology.

“Brevan Howard’s belief in the huge diversity of opportunities within the digital asset space and the significance of this to long term macro investors is the reason we are delighted to welcome Colleen to the firm,” says Aron Landy, CEO and co-founder of Brevan Howard.

In April, the hedge fund company announced its decision to invest up to 1.5% of its Brevan Howard Master Fund into digital assets worth $84 million.

Aron Landy has personally invested into numerous crypto projects, including EOS developer Block.one and the ICE-owned digital assets platform Bakkt. He recently acquired a 25% stake in One River Digital Asset Management, a U.S.-based hedge fund that purchased $600 million worth of Bitcoin (BTC) and Ether (ETH) last year whose crypto funds are backed by Brevan Howard.

Earlier this year, he also led a $25 million extension raise for London-based crypto services firm Copper.co and also invested in the Asian crypto investment platform Kikitrade.

Hedge Funds Eyes Digital Asset Sector

Leading hedge funds are increasingly seeking exposure to blockchain technologies and cryptocurrency. Data indicates that global crypto hedge funds had about $3.8 billion in assets under management last year, up from $2 billion in 2019.

In fact, the percentage of crypto hedge funds with more than $20 million in assets under management has risen from 35% to 46%, while the average assets under management this year rose to $42.8 million from $12.8 million.

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