Alan Howard, the man behind the hugely successful macro fund, Brevan Howard, is looking to launch a $1 billion fund of crypto funds.
According to the Coin Telegraph, Elwood Asset Management, a digital asset management firm wholly owned by Howard, is looking to lure institutional investors into the crypto space by making something similar to a fund of funds.
Like your typical fund of funds, the platform will invest in other crypto funds to create portfolios for clients. It will also charge a management fee on top of the fee for accessing the underlying funds.
While details of the product remain to be finalized, the new fund could enable investors to determine input factors such as the level of risk they are willing to court, their expectations of returns, as well as liquidity terms. It will also measure the potential correlation of the tailored crypto hedge fund portfolio with the rest of their existing assets.
We’re not entirely sure if this concept is new but at any rate, it’s potential could be quite huge given all the hurdles institutionals need to go through to invest in crypto. Elwood Asset Management CEO Bin Ren seems knows this, telling the FT that he sees “a very big growth opportunity here,” adding that the platform could eventually manage over $1 billion in assets.
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