Brevan Howard Pulls Off Largest Crypto Fund Launch

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Brevan Howard Asset Management firm had raised over $1 billion to launch its flagship crypto vehicle. 

BH Digital Raises $1B

Acting as Brevan Howard’s dedicated crypto arm, BH Digital helps investors such as sovereign wealth funds, pension funds, foundations, and endowments gain exposure to crypto. According to four different sources with knowledge of the matter, the investment firm has raised around $1 billion from institutional investors. Most of these funds were raised during BH Digital’s launch earlier this year. The BH Digital Multi-Strategy Fund officially started trading in early January 2022. The team involved was visualizing a fundraise in the year's second quarter, with expectations that the efforts would bring in at least several hundred million dollars. The team was also hoping for billion-dollar funding. According to anonymous sources, 

“Brevan is making an absolutely massive push into crypto…With their network already, they’re going to do a great job of cross-selling. They’re going to have a massive raise in the second half of this year.”

If the recent reports are to be believed, it looks like BH Digital achieved that vision, thus pulling off the largest crypto fund launch. The capital raised is exemplary even for conventional and non-crypto hedge funds. It is an even bigger achievement in the digital assets market, which has a much lower market capitalization. 

High Performing Funds Despite Bear Market

BH Digital is also outperforming its competition. According to reports, it has managed to limit its losses to a minor 4-5% since its launch through the end of June. Despite the domino effect that stemmed from the Terra LUNA implosion and took down multiple crypto lenders, BH Digital has managed to rake in returns that are apparently quite remarkable for the bear market. The firm is still holding off on fully deploying the entire capital amount, especially since the market is not liquid enough to support $1 billion. However, one of the sources has suggested that a “plain vanilla” approach that includes long-only and trend-following tactics could work. The fund’s $1.5 billion initial capacity could rise soon with more investment professionals coming on board and implementing fresh strategies. 

However, the badge of honor of the largest crypto fund raised to date still belongs to venture capital giant Andreessen Horowitz (a16z). The investment firm raised a whopping $4.5 billion in its fourth round, smack dab in the middle of the bear market in May 2022. $1.5 billion of these funds will be allocated towards Web3 seed investments. 

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