UK-Based Hedge Fund Launches Cryptocurrency Arm

Brevan Howard, a top UK hedge fund firm, has appointed Colleen Sullivan to head its newly created cryptocurrency division termed by digital. Aron Landy, Brevan Howard CEO, commended Sullivan’s choice as the best candidate to move the company’s digital asset division in the right direction.

The CEO said that “Sullivan’s experience will be highly beneficial to our clients, and it shows the extent we are willing to go to help our investors maximize the opportunities in this digital asset space. Landy further said that Brevan Howard diversified into the crypto space after identifying huge opportunities there in the present and the future.

Brevan Howard Firm Still Investing Wisely

Despite Howard leaving his position as the CEO recently, Landy has proven to be a great successor with his decision-making. He hasn’t shied away from making investing in available opportunities even when they seem risky.

The hedge fund firm also revealed that 1.6% of its fund (approximately $85m) would be allocated for crypto investments. Before leaving his position as the company CEO, Howard also invested in the crypto space. Two of his well-known crypto-related investments include Bakkt and Block.One.

Also, he raised $26m this summer, which he invested in and Kikitrade – both crypto firms. His investment portfolio consists of some crypto investments. The most notable is his 26% stake in One River crypto asset management firm – a top hedge fund management firm based in the US that bought $605m worth of BTC and eth last year.

85% Of Institutional Investors Interested In ETF Investment

The latest fidelity digital asset study revealed that 85% of institutional investors in America and Europe wouldn’t mind investing in crypto-related firms. Head of the study, Tom Jessop, opined that these investors wouldn’t mind having indirect exposure to the crypto market through other investment products. 

He further said that “This is proof of the wider adoption of the virtual asset space. The digital asset space is now at a turning point where institutional investors are not just interested in bitcoin but also other digital assets.” 

While 25% of the respondents consider virtual assets a separate category, others still view them as an “alternative asset.” 33% of them have direct crypto exposure, 25% own BTC, and 20% are Ethereum holders. While hedge funds and VC firms in America have the highest crypto exposure, they are distantly followed by financial advisors and family offices. There has been an average of 25% increase in crypto adoption by financial advisors alone.

33% of the respondents said they prefer a stake in multi-digital asset fund management firms.   When asked to choose among possible product offerings, 45% of them chose a BTC ETF fund (an offering not yet available in the US). Over 65% of these respondents were optimistic about BTC ETFs. Fidelity digital funds CEO opined that the survey proves institutional investors consider the cryptocurrency space to bring about the same or better investment gains than the traditional asset categories regardless of whether it is a single-asset investment or a varied one.