A recent report noted that BH Digital, a Brevan Howard Asset Management subsidiary, is taking a progressive growth measure in the crypto sector. It has successfully generated over $1 billion through institutional investments. The project intends to channel the fund to its crypto strategies and development plans. It is currently accepting more investments in continuation of its achieved stance.
BREAKING: Brevan Howard scores the largest #Crypto hedge fund launch ever.
— Satoshi Club (@esatoshiclub) August 4, 2022
The recent breakthrough from BH Digital is one of the biggest crypto fundraises in space. Unfortunately, the broader crypto markets have been down with the crypto winter, which threw several protocols to the bottom. As a result, there has been a loss of funds and price value as most crypto tokens experienced over a 50% drop since the beginning of the year.
But the new achievement by the BH Digital fundraising is a positive move, showing that institutional investors are unwavering. Brevan Howard Asset Management boasts more than $23 billion in assets under management (AUM). It has considerably pushed BH Digital, its crypto-focused van, forward through its support.
BH Digital was launched in September 2021 but is left with a low crypto market capacity. Furthermore, according to a reporting source, the fund has not deployed its entire capital due to a lack of liquidity. Hence, it can’t wholly commit totally to any venture.
But the recent fundraising proceeding has created a difference. BH Digital now has a total capacity of $1.5 billion. There is still more expectation that the value would increase. The fund is open for more capital as investors must invest at least $5 million in funding.
Fundraising Succeeds Despite Recent Crypto Winter
The success story of fundraising for BH Digital has come after several months of the bearish trend. First, the Terra ecosystem had collapsed with its token, LUNA. Then, the outcome event expanded to the entire digital asset space, cleaning off over $43 billion from the whole market as losses.
Subsequently, many other companies have been thrown off balance. This includes Three Arrows Capital, which saw severe liquidation issues and an inability to handle its users’ payment and deposited fund demands. There was a trigger that spread to other feeble ones like Voyager Digital and Celsius Network. After much struggle, both have to declare and file for bankruptcy.
Through the bear market period, the BH Digital fund only experienced a loss ranging between 4 to 5% of its creation value. This little downward move is negligible compared with the outplay of the more prominent protocols such as Bitcoin and Ethereum.
Featured image from Pixabay, chart from TradingView.com