Elwood Asset Management To Launch $1 Billion Crypto Venture

News | September 2, 2019 By:

UK-based digital asset investment firm Elwood Asset Management is reportedly planning to launch a $1 billion venture into the crypto hedge fund space.

Owned by hedge-fund billionaire Alan Howard, Elwood Asset Management is an investment firm that combines an institutional heritage in finance with a deep knowledge of blockchain technologies to create breakthrough solutions for global investors.

In an interview with the Financial Times (FT), Elwood Asset Management CEO Bin Ren said that the firm is already in the process of developing the new platform that would tailor portfolios of crypto-based funds for institutional investors. The platform will reportedly seek to address the volatility and security risks often associated with the crypto hedge funds.

According to Ren, the goal of the new venture is to offer a selection of vetted crypto funds that have passed robust due diligence so that market participants can avoid the risks associated with the largely unregulated cryptocurrency space.

“Losing traditional assets in the real world is hard,” Ren said. “In the digital world, it’s very easy to lose assets — put in the wrong address for a bitcoin transfer and it’s gone forever.”

Ren also revealed that the digital asset investment firm has already shortlisted 50 crypto hedge funds that “probably satisfy” its due diligence.

Earlier this year, Elwood teamed with independent investment management firm Invesco to launch a blockchain exchange-traded fund (ETF) on the London Stock Exchange. The ETF aims to deliver the performance of the Elwood Blockchain Global Equity Index, which is calculated for Elwood Asset Management by Solactive AG, by physically investing in the index constituents.