European hedge fund Brevan Howard Asset Management has plans to expand into the nascent crypto space.
According to a report from Bloomberg, the firm plans on launching a new branch called BH Digital to invest in cryptocurrencies and other digital assets.
The firm first began investing in crypto back in April, and the creation of the new department reflects an intention to “significantly expand” its exposure to the digital asset space.
CMT Digital co-founder Colleen Sullivan has been named as the head of the new department.
Fund CEO Aron Landy says,
“Brevan Howard’s belief in the huge diversity of opportunities within the digital asset space and the significance of this to long-term macro investors is the reason we are delighted to welcome Colleen to the firm.”
Not all hedge funds are convinced of crypto’s potential, however. Last week, industry veteran John Paulson – who made billions during the mortgage crisis in 2008 – expressed his skepticism toward digital assets.
“No, I’m not a believer in cryptocurrencies in that I would say that cryptocurrencies are a bubble, and I would describe cryptocurrencies as a limited supply of nothing. So, to the extent there’s more demand than the limited supply, the price will go up. But to the extent that demand falls, then the price will go down. There’s no intrinsic value to any of the cryptocurrencies, except that there’s a limited amount.”
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