Alan Howard, co-founder of asset management firm Brevan Howard and noted as one of the world’s highest-earning hedge-fund managers, recently ventured into the blockchain and cryptocurrency market.
Launched with a focus to introduce regulated investment products into the market, Elwood Asset Management plans to cater to institutional investors. This is to cater to those investors who haven’t yet ventured into digital assets due to the uncertainty associated with them.
What Does the Firm Entail?
To achieve this objective, the firm is going to work with an investment framework named as its Digital Asset Stack. Sectioned into three layers, the Digital Asset Stack starts from investments found in the blockchain and cryptocurrency sectors.
This is how the Digital Asset Stack is defined by the firm.
1. Blockchain Technology
2. Capital Markets
3. Cryptocurrencies
In the blockchain technology part of the stack, Elwood Asset Management plans to introduce opportunities that would allow institutional investors to become a part of the blockchain ecosystem.
In the capital markets section, the firm aims to introduce a multi-manager firm that is driven by regulated products and investments that entail a clear strategy for returns.
Whereas, in the cryptocurrency part of the stack, the firm plans to introduce its own cryptocurrency that it aims to build under a regulatory framework.
How Is It Different from Others?
Speaking to Bloomberg, the firm’s CEO Bin Rein elaborated on the strategy. Rein mentioned that unlike other investment firms, Elwood Asset Management doesn’t plan on limiting its reach to the blockchain sector that seems an “easier sell”. Instead, the firm plans to venture into cryptocurrency investments such as Bitcoin and Ethereum that other regulated entities choose to pass on – mostly due to the uncertainties associated with them.
ETFs Might Be on the Horizon
One of the products that Elwood Asset Management is looking at for future development happens to be an ETF. Given the liquidity and regulation-friendly approach, ETFs have been gaining popularity as a friendly portal to an otherwise indeterminate market.
While the firm is owned by Alan Howard, it was clarified by Bloomberg that he doesn’t take any part in its day to day operations. Instead, those responsibilities remain with Rein and his team.
Elwood Asset Management has not launched any products yet, but the firm mentions that it plans on unveiling its products to interested investors soon.
