Investment manager Brevan Howard’s cryptocurrency fund, the BH Digital Asset fund, experienced a significant decline of nearly 30% in 2022, marking its worst annual performance since its establishment in 2021. The downturn coincided with a faltering bull run for Bitcoin, which saw a notable price decrease, finishing the year down 6%. Despite the overall turbulent conditions in the crypto market, the fund, which focuses on investments in various crypto tokens and digital asset-related companies, recorded gains of 43% and 52% in 2023 and 2024, respectively, reflecting a resurgence in the market.
In December 2024, Bitcoin prices surpassed the $100,000 mark, contributing to the recovery. Industry insiders indicated that the BH Digital Asset fund included diverse investment instruments resembling those typically found in private equity and venture capital. Although it did underperform against Bitcoin’s relatively modest loss, some investors acknowledged the challenging environment that characterized the previous year. Commentary from the hedge fund sphere suggested a recognition of the unique difficulties faced in the crypto landscape during that period.
Brevan Howard has not yet provided any response to inquiries for additional information regarding the fund’s performance trajectory and future strategies. The report highlights the volatility and unpredictability that continue to define the cryptocurrency market, affecting even seasoned investment firms.
