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Hedge fund Brevan Howard will “significantly expand” its foray into digital assets with the launch of a new industry-focused unit, in the latest sign of traditional financial firms. system is racing into this field.
The European hedge fund, one of the largest in the world, said on Monday that it has established a new unit called BH Digital, which will manage cryptocurrencies and digital assets. It has appointed Colleen Sullivan, chief executive officer and co-founder of professional blockchain and cryptocurrency technology firm CMT Digital, as head of the division.
Brevan Howard’s push deeper into cryptocurrencies comes as major financial firms like Goldman Sachs and Bank of New York Mellon and some hedge funds like Marshall Wace and Renaissance Capital sought to tap into this field. The rise of blue-chip names shows a growing appetite for digital assets by professional investors, which is putting pressure on banks to provide services around them. digital assets.
“Brevan Howard’s belief in the diversity of opportunities in the digital asset space and how important this is for long-term macro investors is why we’re excited to welcome Colleen to with the company,” said Aron Landy, the fund’s chief executive officer.
Traditional Wall Street firms have rushed to create a strategy around crypto as the market size has exploded over the past 18 months. A survey in June shows that hedge funds intend to significantly increase their exposure to cryptocurrencies, but investors from traditional markets are facing stiff competition from asset professionals digital.
Brevan announced earlier this year that it will invest in cryptocurrencies through its main Master fund, and it has created a dedicated vehicle for digital assets. The move to establish a unit dedicated to digital assets signals that the fund’s push into cryptocurrencies and its underlying technology has accelerated.
Chicago-based Sullivan will be tasked with making BH Digital an important company to serve professional investors in digital assets and crypto trading, as well as lead “theirs.” private and venture capital investments in cryptocurrency” of the fund. She will also chair the investment committee for a new vehicle that will focus on “disruptive and highly engaging technologies.”
Sullivan’s hire “underlines the company’s commitment to rapidly expanding its cryptocurrency and digital asset platform and services,” Landy said.