UK Billionaire Investing in $1 Billion Crypto Venture
By Luke Flowers – Cryptocurrency Enthusiast
UK billionaire Alan Howard’s Elwood Asset Management is reportedly investing in a set of crypto funds and is looking to manage assets worth $1bn. Howard was once listed on Forbes in 2013 as “one of the 40 highest-earning hedge fund managers”.
Bin Ren, CEO of Elwood, told Financial Times that the company’s new venture capital is focused on designing crypto fund portfolios for institutional investors. This means the crypto fund will determine whether to buy Bitcoin or another crypto. He said that the brand is looking to lessen the troubles of investing in a mostly unregulated crypto market and said that Howard is aiding them by screening the market’s most qualitative crypto funds.
“Losing traditional assets in the real world is hard. In the digital world, it’s very easy to lose assets”. This is because all it takes is one-character wrong on a wallet address and those coins could be lost. Howard has reportedly noted 50 crypto funds that are likely to satisfy their needs for due diligence
An investor will therefore not be able to buy cryptocurrency that doesn’t meet the requirements. This is all in protecting institutional investors as they could have a huge impact if they buy and sell cryptocurrency.
Several funds reportedly lack an established global hedge fund management firm’s seriousness. This year, according to a report prepared by Elwood along with PwC, most crypto hedge funds hold less than $10 million worth of assets, around 0.04% of the market capitalisation. Many have failed during the 2018 crash in which the total valuation of cryptos fell by more than 85%.
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