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- Hedge fund Brevan Howard launched a new flagship vehicle called BH Digital in January, claiming growing demand. The fund, which manages slightly more than $250 million, also stated that the new unit is likely to attract more than $1 billion.
- Bogucki, who has been in the crypto sector for a while and manages well over $3 billion in crypto at Galaxy, argues that, unlike equities, most hedge funds are wary of shorting cryptocurrencies because their value could skyrocket at any time.
- According to a recent research by Coinbase, institutional traders would trade $1.14 trillion in crypto in 2021, more than double the $535 billion transacted by individual traders.
Despite the fact that persistent geopolitical concerns have dampened regular traders’ appetite for risk, conventional hedge funds have been piling up at an unprecedented rate in the last four months. According to sources familiar with the topic, Wall Street veterans Tudor Investment Corporation and Brevan Howard Asset Administration LLP have been quietly increasing their crypto balance sheets.
Investments In A Number Of Blockchain And Cryptocurrency Startups
After crypto prices reached a new high in November 2021, hedge fund Brevan Howard launched a new flagship vehicle called BH Digital in January, claiming growing demand. The fund, which manages slightly more than $250 million, also stated that the new unit is likely to attract more than $1 billion. BH, which has a crypto section with ten portfolio managers, has apparently been actively betting on the direction of Ethereum and Bitcoin while looking for arbitrage opportunities. The firm has also made investments in a number of blockchain and cryptocurrency startups.
Billionaire Paul Tudor Jones of Tudor Investment Corporation, on the other hand, has been placing large bets on digital assets as they increasingly stand out as an inflation hedge. Hudson Bay Funds Management LP, a $15 billion endowment fund based in New York, has also made a killing investing in crypto-related companies.
Citadel Securities LLC, a major market maker, has been quietly integrating bitcoin into its operations. The Illinois-based fund received a $1.15 billion investment in January from crypto-related venture capital firms Sequoia Capital and Paradigm, indicating that the crypto business is becoming more professionalized. According to recent research by Coinbase, institutional traders would trade $1.14 trillion in crypto in 2021, more than double the $535 billion transacted by individual traders.
More veteran hedge funds are joining the cryptocurrency wave now, compared to three years ago, as the movement of digital asset values increasingly corresponds with that of equities.
3 Billion In Crypto At Galaxy
More funds are seeing crypto as a fifth asset class, according to Robert Bogucki, managing director of crypto business Galaxy Digital Holdings Ltd. It’s big enough now. He went on to say. Bogucki, who has been in the crypto sector for a while and manages well over $3 billion in crypto at Galaxy, argues that, unlike equities, most hedge funds are wary of shorting cryptocurrencies because their value could skyrocket at any time. To prevent high volatility, they have also chosen to trade crypto futures on bourses rather than options.
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Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
