A hedge fund owned by British billionaire Alan Howard is going to be investing in blockchain and digital assets.
According to Bloomberg, Elwood Asset Management, which was founded last year, will be attempting to bring institutional investors into the cryptocurrency space.
“The only way for institutions to get meaningful exposure to digital assets has been to buy bitcoin, but many are reluctant or unable to buy bitcoin – and for good reason,’’ Elwood CEO Bin Ren told Bloomberg.
“An ETF gives a highly liquid and regulated way to gain exposure. This is the right point to start.’’
A lack of meaningful regulation and low transparency on the part of many cryptocurrency firms has prevented most institutions from trading in cryptocurrency.
For fund managers, that has made blockchain technology, which underpins the digital asset market, a more appealing sell for investors.
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Blockchain first, bitcoin later
Thus, Elwood is likely to start out by offering investors access to companies working with the technology.
But the hedge fund also plans on eventually providing exposure to some cryptocurrencies, including bitcoin and ethereum.
In preparation for its new set of product offerings, the company has brought in some industry expertise.
Most notably, Kevin Beardsley joined the company back in September of last year.
Beardsley was previously a managing director at cryptocurrency liquidity provider B2C2, a company that has done a lot of work in the over-the-counter institutional market.
Though he owns the company, Alan Howard is not actively involved in the day-to-day operations of Elwood.
The Brevan Howard co-founder is thought to have invested his own money in the cryptocurrency markets back in 2017.