Alan Howard, the billionaire lead of Brevan Howard hedge fund, is rolling out a crypto portfolio platform that intends to create stable investments in a famously volatile market.
The platform is equipped towards institutional clients and will make strategic ventures in other crypto hedge funds, becoming a kind of fund of funds, Financial Times reported on August 30.
The fund is anticipated to oversee as much as $1 billion in investments. This venture comes in the midst of a tempered bull run lead by bitcoin’s increase in price. Data company Hedge Fund Research said that crypto-centered investment pools are up almost 60 percent over the first two quarters this year.
Elwood Asset Management, the company that oversees Howard’s personal digital assets, will manage the launch, development, and course of the new fund. The goal is to find companies that fulfill Elwood’s due diligence in order to maintain a strategic distance from so-called blow-ups.
“Losing traditional assets in the real world is hard. In the digital world, it’s very easy to lose assets — put in the wrong address for a bitcoin transfer and it’s gone forever,” said Elwood CEO and blockchain funds specialist Bin Ren.
Howard’s venture will ideally recognize enough firms to invest in to offer their own clients portfolio alternatives that fulfill their risk profiles, liquidity needs, and diversity requirements.
Details are imminent, but Elwood may plan bespoke portfolios for each investor. For the service, Elwood will charge an undisclosed management expense, in addition to a fee to get to the underlying funds.
Earlier, Elwood and investment management firm Invesco co-launched an exchange-traded finance (ETF) with stakes in firms developing blockchain innovation.
“The only way for institutions to get meaningful exposure to digital assets has been to buy Bitcoin, but many are reluctant or unable to buy Bitcoin — and for good reason,” Ren said in an interview with Bloomberg in March.
Howard has invested in cryptocurrencies since 2017, including an early venture in Block. one, the parent company of EOS. He isn’t involved in the daily operations of Elwood.