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Brevan Howard Subsidiary Raises $1B for Crypto Fund

A new report indicates BH Digital, a crypto-focused vehicle for Brevan Howard Asset Management, has raised $1 billion in funds, some of which it has yet to commit to the market.

Brevan Howard Subsidiary Raises $1B for Crypto Fund
Photo credit: Jason Alden/Bloomberg

Key Takeaways

  • Brevan Howard Asset Management has reportedly raised over $1 billion for its digital asset subsidiary, BH Digital.
  • Launched in Sep. 2021, BH Digital now has a total capacity of $1.5 billion for the crypto market; a lack of liquidity is currently preventing the firm from deploying the totality of its funds.
  • BH Digital reportedly only suffered a 4-5% loss in the crypto market’s collapse.

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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 further investments.

Brevan Howard Crypto Arm Raises $1B 

The crypto downturn hasn’t frightened institutional investors.

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

BH Digital, which launched in September 2021, has not fully deployed all of its capital yet; a source said lack of liquidity was preventing the commitment of the entire sum. Thanks to the raise, BH Digital is reportedly now capable of deploying up to $1.5 billion, with the number expected to rise. The fund remains open for further capital; investors must commit a minimum of $5 million.

The fund reportedly suffered only a 4 to 5% loss from its creation until June despite the market’s recent brutal downturn (Bitcoin and Ethereum are respectively trading at 67.3% and 67.2% from their all-time highs.)

The news of the massive fundraise comes following months of turmoil which saw Terra, one of crypto’s top protocols, implode and directly wipe out 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 problems, in turn, triggered liquidity crises for numerous crypto lending companies such as Celsius and Voyager Digital.

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

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