It should be no surprise that more traditional corporations join the crypto fever by investing in bitcoin or adopting blockchain technology. Brevan Howard, a European hedge fund, is the latest asset manager to join the movement.
Bloomberg reported that the asset manager is preparing to invest $84,000,000 in digital assets, representing 1.5% of its $5.6 billion hedge fund. Jonny Steindorff and Tucker Waterman, co-founders of crypto investment firm Distributed Global, will oversee the initial allocation.
Betting on Several Cryptos
According to a person familiar with the matter, the fund will have a diverse portfolio by focusing on several crypto assets besides bitcoin and ether. Its co-founder, Alan Howard, has vast experience in the field, investing in cryptocurrencies and backing the crypto funds of US-based One River Asset Management.
Howard is now expanding his investments following a year of record gains. He now joins the likes of Paul Tudor Jones and Stanley Druckenmiller, well-known hedge fund managers who have turned into prominent bitcoin supporters, calling BTC a better store of value against declining fiat than gold.
A Hedge Against Fiat
The US government has taken measures to fight the pandemic with a 1.9 trillion COVID-19 relief package – the most recent one. Several analysts in the field have warned about a possible state of inflation for the US Dollar as the Federal Reserve is printing large sums of paper money.
As reported, Druckenmiller joined Jones by investing in Bitcoin. During an interview on CNBC, he admitted that he’s long on BTC, adding that the crypto could become a better store of value against that scenario.
“I’m a bit of a dinosaur, but I have warmed up to the fact that Bitcoin could be an asset class that has a lot of attraction as a store of value,” — said Druckenmiller
Last year, Jones started buying bitcoin when the COVID-19 hit the global markets in March. His hedge fund, the Tudor Investment Corporation, has been investing part of its capital in bitcoin futures.