UK Hedge Fund to Allocate $48M to Digital Assets

Brevan Howard, a U.K. asset management firm, plans to invest $48 million in digital exposure. The firm has around 12 years of experience in the crypto market.

An asset management firm in the U.K. is aiming at increasing its reach in the crypto market space. According to an inside source, Brevan Howard is planning to invest around $48 million in crypto. This will be 1.5% of the total investments in their hedge fund. By doing this, the firm will become one of the latest money managers to venture into crypto.

This move will be spearheaded by the co-founders of Distributed Global, Tucker Waterman, and Johnny Steindorff.  This decision will be an added boost to crypto, which is heavily adopted as an investment tool. The growth of crypto has enabled one of the largest crypto exchanges globally, Coinbase, to go public at a valuation of nearly $100 billion.

Brevan Howard’s experience in crypto

This will not be the first time that Brevan Howard will be venturing into crypto. The co-founder of this asset management firm, Alan Howard, has invested a significant amount of his personal wealth into cryptocurrency. Besides, the firm bought a 25% share into One River Asset Management, a firm that holds $600 million worth of Bitcoin and Ether.

Distributed Global, a crypto investment firm, will oversee Brevan Howard’s move into crypto. Alan Howard has been one of the leading investors of Distributed Global. Distributed Global also operates a crypto venture capital fund supported by other financial players such as Temasek Holdings from Singapore.

The increasing adoption of crypto

Brevan Howard has stated that they will be investing in several different cryptocurrencies. However, Bitcoin will carry a significant portion. The prices of all cryptocurrencies have significantly increased for the better part of this year. Bitcoin is still the best performing cryptocurrency, and it has surpassed $62,000.

Brevan Howard’s decision will be one of the many that have been made in recent months by hedge funds and asset management funds. M31 Capital launched a Bitcoin hedge fund and is waiting for a green light from the U.S. Securities and Exchange Commission. Retail investors and hedge fund managers have also come out to pinpoint the strength of Bitcoin. Some investors have also claimed Bitcoin to be superior to gold.

As the expansion of crypto continues, more traditional investors and institutions will be forced to change their business models and adopt crypto to meet their clients’ increasing demand.