Bitcoin has been getting traction in the financial market as a hedge. In terms of saving the interests of investors, it has outrun gold and fiat currencies. As the flagship cryptocurrency has reached a new ATH of $63K in the past few days, more traditional financial entities are trickling down their interests into digital assets. The latest candidate to join the program is Brevan Howard Master Fund.
This fund is the main hedge of the asset management organization Brevan Howard. It is currently valued at possessing $20 billion AUM. Alan Howard, the co-founder of the fund, is also an investor in the One River Asset Management. ORAM is itself a volatility and risk management-focused hedge fund with $1 billion worth of BTC and ETH holdings.
Is Bitcoin Becoming the Next Big Hedge for Institutional Investors?
Bitcoin has been endorsed as a store of value by many financial experts and asset managers. Even the retail investors who have accumulated sole holdings of the leading coin can save their investment from falling into a slump and multiply their savings. Since a considerable amount of volatility is still associated with cryptocurrencies, financial institutions are exploring this option as an investment diversification opportunity.
The Brevan Howard Fund is willing to invest 1.6 percent of its $5.6 billion money pool into a variety of digital assets, including Bitcoin. This is just part of an initial allowance allocation which is going to be supervised by Johnny Steindorff and Tucker Waterman, who have both co-founded Distributed Global, a crypto investment firm. These moves are just another example of the financial FOMO trend during the year of the Bitcoin boom.
The Indirect Links of Brevan Howard with Digital Currencies
One of the biggest hedge funds in the world takes heed from others before dipping its toes into the Bitcoin money pool. Alan Howard has many associations with the crypto-centric financial programs before ruling in favor of the digital currencies himself. The British billionaire has been associated with Distributed Global since 2018.
The same firm is also running a capital venture in association with Singapore-based Temasek Holdings Pte. The Jersey-based company partook in a cryptocurrency custodian funding round worth $25 million last year. Plus, the asset management firm is also the biggest shareholder in CoinShares. CoinShare is the leading digital asset management enterprise in Europe.