Another institution enters the market! Global macro fund Brevan Howard acquires Bitcoin and Ethereum, planning to increase holdings to $1 billion.

Bitcoin hit a record high of $22,190 before the deadline. The optimism and investment from institutions this year have played a significant role. Brevan Howard Asset Management, a macro hedge fund with assets over $10 billion, is the latest institutional investor interested in cryptocurrency assets. They have already invested $600 million in Bitcoin and Ethereum and plan to increase it to around $1 billion next year.

New Generation Asset Allocation

Brevan Howard Asset Management, founded by Alan Howard in 2002, manages around $10 billion in assets across six global offices and was once referred to by the Financial Times as one of the largest macro hedge funds in 2013.

According to Bloomberg, Brevan Howard is investing through the fund of asset management firm One River Asset Management, established in 2013 with assets under management of approximately $1.6 billion. Eric Peters, CEO of One River, stated:

They plan to increase their holdings in Bitcoin and Ethereum to a scale of $1 billion in early 2021, which represents a new generation of asset allocation, and this wave is just beginning.

The Most Interesting Macro Trade

Peters predicts greater volatility in the financial markets, believing that as interest rates in developed countries approach zero or turn negative, with fiscal spending and debt monetization, the ultimate result will be currency devaluation and inflation.

However, he maintains a conservative stance on the rise of Bitcoin and Ethereum, only mentioning that the current $600 million asset size was achieved before Bitcoin reached $16,000 in November, attributing the investment catalyst to the COVID-19 pandemic. This is also the most interesting macro trade of his career. He stated:

Gold has existed for thousands of years and will appreciate in inflation, but the prices of Bitcoin and Ethereum may far exceed the increase in gold prices, albeit with greater risks than gold.

However, Peters emphasized that they will not engage in venture capital or any aggressive trading and have chosen Coinbase as their partner for asset trading and custody. It is understood that the fund will charge a 1% fee and allow investors to sell within a day.

Yesterday, on 12/16, it was reported that traditional financial institution Ruffer Investment allocated 2.5% of its assets to Bitcoin, facilitated through One River, which is also one of its investors. Ruffer updated today, stating that their total investment in Bitcoin is $744 million, accounting for approximately 2.7% of the company's asset under management.