All about Crypto & Blockchain

Brevan Howard Asset Management raises $1 billion for subsidiary BH Digital.


BH Digital, a digital asset subsidiary of Brevan Howard Asset Management, successfully raised $1 billion from institutional investors. The crypto-focused arm was launched in 2021. It hasn’t fully used the totality of its capital yet due to a lack of liquidity.

With the latest funding, which is the largest in crypto history, BH Digital can deploy up to $1.5 billion – this figure is expected to rise. The funding is open for further capital, wherein investors must commit a minimum of $5 million. It has suffered a setback, a 4 to 5% loss until June. The huge funding comes at a time when the crypto market is facing an ongoing slump. Bitcoin and Ethereum, the top two cryptocurrencies, are trading at 67.3% and 67.2% respectively from their all-time highs.

Brevan employs a multi-manager and multi-strategy approach, putting limited-partner capital to work through both venture capital-style plays and liquid cryptos. Teams of portfolio managers structured in pods implement strategies. It has more than 20 external blockchain engineers working under full-time retainers. Brevan has $23 billion across a wide range of asset classes. The firm acknowledges that cryptocurrencies are often akin to small- or medium-cap equities. It knows that building a sizeable long or short leg in risky assets is tricky to pull off in a quick fashion without hitting its acquisition price in a meaningful way. Brevan has an initial capacity of up to $1.5 billion and it’s expected to rise as the unit adds investment professionals and brings in fresh sets of strategies to the market.

The firm is open to external capital.

Leave A Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More