Brevan Howard Asset Management LLP made two important announcements today, drawing attention to its future crypto expansion plans. First, the hedge fund hired Colleen Sullivan to run its crypto verticals. Second, it launches a new vertical for investing in digital assets.
These are important announcements to streamline its private and high risk cryptocurrency investing activities.
CEO Aron Landy said in a statement:
“Brevan Howard’s belief in the vast array of opportunities in digital assets, and the importance of these opportunities for long-term macro investors, is what makes us very happy to welcome Colleen to our company.”
Prior to working with Brevan, Sullivan was the Co-Founder, CEO and Partner at CMT Digital, based in Chicago. Her department focused on crypto asset trading, investing in blockchain technology, and legal and political engagement in the industry. And now that the hedge fund is looking to expand into the same tech industry, it has also introduced a specialized division called BH Digital.
In early April, the UK fund reportedly had 1.5% of its $ 5.6 billion fund in digital assets. Aside from Bitcoin, it’s also already deeply immersed in other liquid tokens and crypto startups.
Even before these announcements, founder Alan Howard had personally invested in crypto. He reportedly owns a 25% stake in One River Asset Management and has stakes in crypto companies like Copper. co. and Elwood. According to reports, the former CEO has at least nine investments in crypto companies.
Lately, a lot of hedge funds like Tudor Investment Corporation and Third Point are scrutinizing crypto waters. Just last week, Bain Capital Ventures (BCV) launched a crypto-focused fund called BCV Crypto Fund I, LP. requested
Why the increased investment by hedge funds
A PwC 2021 report on global hedge funds gives the reasons. The main reason most hedge fund managers cited for adopting digital assets was “general diversification”. That being said, “exposure to a new value-added ecosystem” and its ability to “hedge against inflation” were other reasons for the growing popularity of crypto in hedge fund investments.