Institutional Cryptocurrency Platform Backed by Hedge Fund Billionaire Alan Howard Announced

Elwood Chief Executive Officer Bin Ren disclosed that the firm was working on a platform that would tailor portfolios of cryptocurrency funds for institutional investors. According to reports, the new platform aims to address the volatility and security risks often associated with the cryptocurrency hedge funds. CEO Ren claimed that the objective was to provide investors with a select group of vetted cryptocurrency funds that have passed robust due diligence so that market participants can avoid “blowouts.” Whilst the details of the new venture have yet to be finalized, it is noted that the platform would allow investors to specify their terms — such as the risk level they are willing to take, the returns they expect, as well as their liquidity terms. In addition to that, it will also determine the potential correlation with other assets owned by investors. As a result, investors will get portfolios specifically tailored to their needs. Besides the fees the investors need to pay to access the underlying funds, they would also have to pay a certain fee to Elwood for using the new platform.

An Institutional Cryptocurrency Juggernaut

While most existing cryptocurrency funds manage assets worth in the region of tens of millions, the new platform from Elwood is set to be among the juggernauts in the digital asset space with the likes of Digital Currency Group, Pantera Capital or Polychain Capital. According to Ren, the platform-style product could become very popular aiming for $1 billion in assets. Considering the high range of cryptocurrency projects, Elwood claims to have been screening cryptocurrency hedge funds and identified up to 50 that “probably satisfy our due diligence.”

Alan Howard Extends His Influence in Crypto

The new platform builds on Elwood’s previous work in the crypto space. Earlier this year, the investment firm launched the Elwood Blockchain Global Equity Index. The index, which is calculated by index provider Solactive AG, stimulates investment into both cryptocurrency and blockchain projects. Elwood had also indicated it was planning to increase its cryptocurrency offerings as it announced the launch of a blockchain exchange-traded fund in partnership with Invesco — which would be listed on the London Stock Exchange. Last month, Invesco Japan launched the Japanese domestic Invesco Global Blockchain Equity Fund, offering Japanese investors exposure to digital assets and blockchain technology. The fund will track the performance of the Elwood Blockchain Global Equity Index. Prior to this, there had been other reports that also suggested Elwood was planning to launch a range of cryptocurrency products targeting institutional investors. Moreover, Alan Howard himself has a host of cryptocurrency investments under his belt, including in EOS developer Block.one as well as the ICE-owned digital assets platform Bakkt. What do you think of the recent increase in crypto-related products targeted towards institutional investors? Will this fuel a potential bull market? Let us know in the comments below!