UK-based hedge fund Brevan Howard, with an estimated £7.2 billion ($10 billion) in assets under management, is expanding its involvement with the crypto market. Brevan Howard is famous for accurately betting on macroeconomic trends and sees the emerging crypto space as a ripe opportunity.
According to a Monday report, the company is launching a crypto-focused unit called BH Digital. The new arm will focus on managing crypto assets as well as making private and venture capital investments in budding crypto companies. BH Digital will hire Colleen Sullivan, the current CEO of the digital arm of trading firm CMT, to lead the equity investing division.
Brevan Howard's decision to launch a crypto-focused division can rightly be considered further proof that institutional investors are actively seeking exposure to the emerging industry. This new interest has contributed to the massive price increase seen in the crypto market over the past year.
Popular U.S cryptocurrency exchange Coinbase noted in its Q2 letter to investors that a significant amount of their trading volume currently comes from institutions. Over the said period, Coinbase reportedly had a turnover of £334 billion ($462 billion) with institutional investors responsible for £229 billion ($317 billion) of that amount.
UK Funds Betting Big on Crypto
UK-based funds are also not left behind, with a number of notable asset managers already investing directly into the crypto market or into companies within the industry.
In April, Baillie Gifford participated in a £215 million ($300 million) Series C funding round for crypto exchange platform Blockchain.com. The fund manager invested £72 million ($100 million), marking its largest single investment in a crypto-related startup.
In June, Bitcourier reported that Marshall Wace, a UK hedge fund with over £40 billion in assets was working towards the launch of a crypto fund. The fund was said to target startups focusing on blockchain, stablecoins, and crypto payments. Marshall Wace participated in a £317 million ($440 million) funding round for Circle, the firm behind the USDC stablecoin.