Home Technology Brevan Howard Subsidiary Raises $1 Billion for Crypto Fund

Brevan Howard Subsidiary Raises $1 Billion for Crypto Fund

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Brevan Howard Subsidiary Raises $1 Billion for Crypto Fund

Key points to remember

  • Brevan Howard Asset Management has reportedly raised over $1 billion for its digital asset subsidiary, BH Digital.
  • Launched in September 2021, BH Digital now has a total capacity of $1.5 billion for the crypto market; a lack of liquidity currently prevents the company from deploying all of its funds.
  • BH Digital would have only suffered a 4-5% loss in the crypto market crash.

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Brevan Howard Asset Management subsidiary BH Digital has reportedly raised $1 billion from institutional investors for its crypto strategies and is still accepting other investments.

Biggest Crypto Fundraiser

The crypto downturn has not scared off institutional investors.

European hedge fund management firm Brevan Howard Asset Management, which manages more than $23 billion in assets, has would have has raised over $1 billion from institutional investors for its crypto-focused vehicle, BH Digital.

BH Digital, which launched in September 2021, has yet to fully deploy all of its capital; a source said the lack of cash was preventing the full amount from being committed. With this increase, the largest in crypto history, BH Digital would now be able to deploy up to $1.5 billion, and that number is expected to grow. The fund remains open to new capital; investors must commit a minimum of $5 million.

The fund is believed to have suffered only a 4-5% loss from its inception to June despite the recent sharp market downturn (Bitcoin and Ethereum are trading at 67.3% and 67.2% from their historic highs.)

News of the massive fundraising comes after months of turmoil that saw Terra, one of the leading crypto protocols, implode and directly eliminating more than $43 billion from the market; the event was responsible for staggering losses for investment firms, including crypto fund Three Arrows Capital, whose solvency problemsin turn, triggered liquidity crises for many crypto credit companies such as Celsius and digital travel.

Disclosure: At the time of writing this article, the author of this article owned ETH and several other cryptocurrencies.

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