Brevan Howard to ‘dramatically expand’ push for crypto assets

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Hedge fund Brevan Howard “will dramatically expand” its foray into digital assets with the launch of a new industry-focused unit, in the latest sign of how traditional financial firms are entering the industry.

The European hedge fund, one of the largest in the world, announced Monday that it has set up a new unit called BH Digital, which will manage cryptocurrencies and digital assets. He named Colleen Sullivan, CEO and co-founder of cryptocurrency and blockchain technology firm CMT Digital, to head the division.

Brevan Howard’s push into crypto comes as large financial firms such as Goldman Sachs and Bank of New York Mellon and a number of hedge funds such as Marshall Wace and Renaissance Capital have sought to exploit the sector. The influx of big names highlights a growing appetite for digital assets among professional investors, which is putting pressure on banks to offer services around digital assets.

“Brevan Howard’s belief in the immense diversity of opportunities within the digital asset space and the importance of this for long-term macro investors is why we are delighted to welcome Colleen to the of the company, ”said Aron Landy, managing director of the fund.

Traditional Wall Street companies have rushed to strategize around cryptocurrencies as the market size has exploded in the past 18 months. A June survey showed that hedge funds intend to significantly increase their exposure to cryptocurrencies, but investors in traditional markets face stiff competition from digital asset specialists.

Brevan announced earlier this year that it will invest in cryptocurrencies through its main master fund and has created a specialized vehicle for digital assets. The decision to set up a dedicated digital assets unit indicates that the fund’s push towards cryptocurrencies and its underlying technology has accelerated.

Chicago-based Sullivan will be responsible for making BH Digital a key player in serving professional investors in digital assets and crypto trading, as well as leading “crypto private investment and venture capital activities.” fund. She will also chair the investment committee for a new vehicle that will focus on “highly compelling and disruptive technologies”.

The hiring of Sullivan “underscores the company’s commitment to rapidly expanding its platform and its cryptocurrency and digital asset offerings,” Landy said.