- Hires Sullivan for crypto division CMT Digital
- Sullivan to guide non-public, enterprise investments
- Turnover on high trade led by institutional buyers
LONDON, Sept 13 (Reuters) – Hedge fund Brevan Howard stated on Monday that it was increasing its crypto enterprise, the most recent signal that institutional curiosity within the asset class is gaining momentum.
Brevan, extra well-known for its bets on macroeconomic developments, has been among the many most high-profile of main hedge funds transferring into the world of crypto buying and selling, identified for its unstable markets and scope for outsize good points.
The asset supervisor stated it will launch a brand new unit, BH Digital, to handle cryptocurrency and digital property. It stated it will additionally rent Colleen Sullivan, presently CEO of the digital arm of buying and selling agency CMT, to guide non-public and enterprise investments in crypto.
Brevan’s growth comes on the again of different high-profile cash managers venturing into this house in current months. Hedge fund supervisor Paul Tudor Jones has invested in bitcoin whereas Man Group (EMG.L) trades bitcoin futures. read more
An annual report revealed by PriceWaterHouseCoopers, Various Funding Administration Affiliation and Elwood Asset Administration discovered whole property underneath administration of crypto hedge funds globally almost doubled to $3.8 billion in 2020 from US$2 billion within the earlier 12 months.
The rise in institutional curiosity comes as a wider vary of cryptocurrencies turn into obtainable whereas bitcoin and ethereum , the world’s finest identified cash, are buying and selling effectively beneath their document highs.
“What was initially seen as one thing of a fad now seems to be turning into a extra everlasting construction of the monetary panorama and this has began to see what have been initially fringe monetary devices transferring to turn into extra mainstream and really a lot forcing the institutional curiosity we are actually seeing,” stated Stuart Cole, head macroeconomist at London-based Equiti Capital.
The rise in institutional curiosity has rippled over to the buying and selling house. Eurex, Deutsche Boerse’s derivatives trade, launched bitcoin futures on Monday to feed on the rising curiosity.
Coinbase, one of many largest cryptocurrency exchanges on the planet, says institutional curiosity in buying and selling cryptocurrencies has soared this 12 months.
In its second quarter letter to shareholders, Coinbase stated turnover of cryptocurrencies hit a document $462 billion within the three months to June. Of this quantity, $317 billion was traded by institutional buyers and the remaining by retail purchasers.
This ratio has flipped from the primary quarter of 2018 when retail buyers accounted for the lion’s share of cryptocurrency buying and selling.
Whereas hedge funds and exchanges have scrambled to seize buying and selling revenues, international banks have been comparatively sluggish to latch on to the development, with their wealth administration purchasers largely pushing them to supply cryptocurrency buying and selling.
Citigroup Inc (C.N) is contemplating providing bitcoin futures buying and selling for some institutional purchasers whereas Commonplace Chartered has shaped a newly minted analysis division for cryptocurrencies. read more
Reporting by Simon Jessop and Saikat Chatterjee; Further reporting by Huw Jones; Enhancing by Rachel Armstrong and Bernadette Baum
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