A discreet hedge fund that bets on volatility has purchased more than $600 million worth of Bitcoin and joined forces with Brevan Howard Asset Management co-founder Alan Howard, Bloomberg reports.
Eric Peters, founder and CEO of One River Asset Management, said he has formed a new company in response to growing institutional interest in cryptocurrencies.
He said One River Digital Asset Management completed the purchase of digital assets in November, before Bitcoin reached $16,000. The firm has commitments that will allow assets in Bitcoin and Ethereum (ETH) to rise to about $1 billion by early 2021, Peters added.
“There will be a generational shift in this new asset class. Flows have only just begun,” he says.
One River Digital has been backed by British billionaire Alan Howard. He invested in the firm’s funds and also took a stake in the business. His firm, Elwood Asset Management, provides trading and analytical services and technical support.
Northern Trust acts as administrator for One River Digital’s funds. Coinbase is the execution partner and custodian.
According to Bloomberg, the British firm Ruffer is also investing alongside One River Digital, which previously became the owner of the first cryptocurrency worth more than $740 million.
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