Alan Howard to open a $1 billion crypto hedge fund

Alan Howard, the head of the Brevan Howard Hedge Fund, is introducing a crypto portfolio platform that is expected to help users make stable investments in an extremely volatile market. According to a report by the Financial Times, the new platform is geared towards institutional clients and will make well-planned investments in other crypto hedge funds. 

The fund will reportedly be able to manage around $1 billion in investments. Hedge Fund Research, a data firm, says that crypto-focused investment pools are up by about 60% over the last six months. The launch, construction and direction of the platform will be overseen by Elwood Asset Management, the firm that manages Howard’s personal digital assets. The aim is to look for companies that satisfy Elwood’s due diligence to avoid “blow-ups.”

Bin Ren, CEO and blockchain funds specialist at Elwood said:

“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.”

Howard's venture should identify enough firms to invest in to offer their clients various portfolio options that satisfy their risk profiles, liquidity needs and diversity requirements. Elwood might reportedly design bespoke portfolios for each investor. For this, the company will charge a certain management fee and a fee to access the underlying funds. 

During an interview with Bloomberg, back in May, Ren said:

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.”