Billionaire Alan Howard, who is also the head of Brevan Howard hedge fund will launch a crypto portfolio platform with the target to make stable investments in the current volatile crypto market. According to a Financial Times report the new platform is tailored for institutional clients and will become a ‘fund of funds’ by making strategic investments in other crypto hedge funds.
The initial idea of the fund is to manage as much as $1 billion in investments. Data firm Hedge Fund Research reported that crypto-related investment pools increased almost 60 percent during the first two yearly quarters. The company that manages Howard’s private digital assets, Elwood Asset Management, would supervise the launch, development and direction of the fund. Elwood’s target will be to find companies that satisfy its due diligence to dodge potential blow ups.
CEO and blockchain funds specialist at Elwood, Bin Ren commented:
“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,”
Alan Howard’s attempt should ideally find enough companies that will invest and offer their personal clients portfolio options that also satisfy the established liquidity needs, risk profiles and diversity requirements. More details are still yet to come, but Elwood may create portfolios for every investor. The management fee that Elwood will charge is going to be confidential, in addition to a fee to access the underlying funds.
Earlier, Elwood and Invesco, an investment management firm co-launched an exchange-traded fund (ETF) that has stakes in firms that develop blockchain technology. Bin Ren stated in an interview:
“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.”
Alan Howard has a long history of investments in cryptocurrencies that date since 2017, including the popular one at Block.one.