Brevan Howard’s New Unit to Enhance Crypto Reserve Returns Amid AUM Growth and Institutional Investment
Brevan Howard Asset Management’s crypto division, BH Digital, has launched a new unit called BH Digital Solutions to boost returns for companies holding cryptocurrencies as reserve assets. This unit is led by Chris Rayner-Cook, former head of trading and financing at Coinbase, and will initially focus on blockchain and crypto mining companies. BH Digital’s assets under management (AUM) grew by 20% in the first half of 2024, reaching $2.3 billion, driven by growing institutional investment and rising cryptocurrency market prices. Since its inception in late 2021 and commencing trading in March 2022, BH Digital has achieved a more than 50% gain. The firm’s CEO, Gautam Sharma, pointed out that this new unit is a natural extension of their existing services given the increasing opportunities in the crypto space for institutional investors. Over 90 companies globally currently hold Bitcoin on their balance sheets, with MicroStrategy holding the largest amount at over 226,330 BTC. Brevan Howard is also exploring new ventures like asset tokenization through initiatives such as the web3 protocol Libre, launched in early 2024 for regulatory-compliant alternative investments.
Bullish
The launch of BH Digital Solutions reflects the growing confidence of institutional investors in the crypto market, coupled with a significant 20% increase in AUM and over 50% gains since inception. This indicates sustained growth and positive momentum for cryptocurrencies, suggesting a bullish outlook both short-term and long-term.