UPDATE: This article has been corrected to show that Elwood's platform could reach $1 billion in assets.
An asset management firm that manages the crypto assets of billionaire trader Alan Howard is working on a cryptocurrency hedge fund platform that could reach $1 billion in assets, reports the Financial Times.
The platform, created by London-based Elwood Asset Management, would design portfolios for crypto investors, guiding them through crypto’s treacherous waters by pointing out the right crypto hedge funds to invest in.
Elwood’s system would ask investors to enter their intended risk, returns, and amount of liquidity, and out pops a tailor-made portfolio.
The platform builds on Elwood’s previous work in the space. In March, Elwood launched the Elwood Blockchain Global Equity Index. The index, which is calculated by index provider Solactive AG, encourages investment into both crypto and blockchain projects.
This, said CEO Bin Ren in a press release in July, could help to break the narrow mindset of some investors, who think of blockchain as synonymous with cryptocurrencies.
“The wider applications of blockchain are becoming increasingly apparent in our day-to-day lives, in everything from personal finance, to logistics and medical care, that mindset is starting to change,” said Ren.
The initiative follows other billion-dollar-plus investments in the space. Telegram’s blockchain, TON, which is expected to be released in the coming months, raised over $1.7 billion.
Yet future investors hoping to make a profit from crypto would be wise to recognise that investing serious money into crypto does not guarantee success. Block.one, for instance, fielded investments of some $4 billion for its EOS blockchain–but as some have pointed out, the network has underperformed. Investors in alleged exit scam PlusToken meanwhile, are still licking their wounds after the founders allegedly made off with $3 billion in cash. Yikes.
Decrypt reached out to Elwood for comment, but a representative said they were unable to comment at this time.