Hedge Fund Brevan Howard Expands Crypto Business

Assets Under Management of crypto hedge funds globally nearly doubled to almost 4 billion in 2020 from 2 billion within the previous year
Assets Under Management of crypto hedge funds globally nearly doubled to almost 4 billion in 2020 from 2 billion within the previous year

Well known Brevan Howard, a EU hedge fund management company said it’ll be increase its crypto business, so it means new investments will be forwarded to crypto markets. Brevan Howard Digital, which is that the hedge fund’s recently created company unit, is anticipated to “manage its cryptocurrency and digital assets.”

Growing Interest in Crypto From Hedge Funds

In addition to making BH Digital, Brevan Howard, in step with a Reuters report, has also said it’ll be hiring Colleen Sullivan, the present CEO of the digital arm of trading firm CMT, to steer private and venture investments in crypto.

The announcement by Brevan Howard, which is reputed “for its bets on macroeconomic trends,” is that the latest piece of evidence that implies that “major hedge funds [are] getting into the world of crypto trading.” To buttress claims that institutional investors are pivoting to cryptocurrencies, the identical report points to recent moves by other high-profile money managers like Paul Tudor and also the Man Group which trades bitcoin futures.

In addition, the report also makes relevance an annual report published by Price Waterhouse Coopers, Alternative Investment Management Association, and Elwood Asset Management.

In this annual report, it’s shown that the worth of total assets under management (AUM) of crypto hedge funds globally nearly doubled to almost $4 billion in 2020 from $2 billion within the previous year.

Cryptocurrencies Going Mainstream

Meanwhile, Stuart Cole, the pinnacle macroeconomist at London-based Equiti Capital, is quoted within the report explaining how institutional investors’ perception of cryptocurrencies has changed over the years. Cole notes:

Huge investor losses are expected with trading suspended and assets frozen at many small exchanges as customer protection will not likely be the priority of those exchanges facing an imminent closure.

However, the report still acknowledges that not all large corporations are embracing cryptocurrencies. It notes that while hedge funds and exchanges are scrambling to “capture trading revenues,” global banks are slower in their approach.

This approach by banks has persisted despite the pressure from their wealth management clients to supply cryptocurrency trading.