Brevan Howard, one of the world’s prominent macro-focused hedge fund managers, is working to strengthen its cryptocurrency investment strategy after experiencing a challenging period.
The firm’s crypto chief investment officer is outlining a turnaround plan designed to improve performance, restore confidence, and position the business to capture opportunities in an increasingly competitive digital asset market.
The strategy comes as institutional investors continue to reassess their exposure to cryptocurrencies. Although Bitcoin and other digital assets have attracted substantial interest from traditional financial institutions, volatile prices, shifting market conditions, and changing investor expectations have made consistent returns difficult to achieve.
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The challenge is to demonstrate that its cryptocurrency operations can navigate these conditions while maintaining the disciplined investment approach associated with the wider firm.
Reassessing the Crypto Investment Strategy
A central element of the turnaround effort is the need to reassess investment decisions, identify weaknesses, and refine the firm’s approach to managing risk.
Crypto markets operate around the clock, react rapidly to economic developments, and can experience sharp price movements that complicate traditional portfolio management. These characteristics require investment managers to combine market expertise with effective risk controls.
A successful strategy must account for liquidity, leverage, sudden changes in investor sentiment, and the possibility that correlations between digital assets and traditional financial markets can shift unexpectedly.
The crypto CIO’s plan therefore highlights the importance of evaluating how capital is deployed and ensuring that investment decisions reflect changing market conditions.
Rather than relying exclusively on bullish expectations, institutional investors must remain prepared for extended downturns and periods of limited liquidity.
Improving performance after a difficult stretch also requires distinguishing temporary market setbacks from deeper weaknesses in portfolio construction.
That distinction can help managers determine whether to adjust existing positions, reconsider particular strategies, or pursue opportunities in different segments of the market.
Expanding Beyond Cryptocurrency Tokens
Another major component of the turnaround plan is broadening the investment universe beyond cryptocurrencies themselves. Under the leadership of Chris Rayner-Cook, a former Coinbase executive, BH Digital is placing greater emphasis on blockchain applications, publicly traded companies, and late-stage private businesses connected to digital assets.
This shift reflects a changing industry. Stablecoins, tokenization, and blockchain-based financial services are increasingly attracting established companies, creating investment opportunities that extend beyond Bitcoin and other major tokens.
Visa, Mastercard, and PayPal are among the companies developing stablecoin-related services. Their involvement illustrates how blockchain technology could become embedded in mainstream financial infrastructure, potentially creating opportunities for investors who identify promising businesses early.
To support this approach, Brevan Howard has hired Omar Kanji to lead growth investments and Jason Li to manage digital-asset-related equities. The firm expects its universe of qualifying publicly traded companies to more than double over the following 18 months.
Performance and Institutional Confidence
The turnaround follows a difficult 2025, when the flagship digital-asset fund reportedly lost approximately 29.5%, reversing substantial gains recorded in 2023 and 2024. The setback underscores the risks of investing across volatile tokens and early-stage blockchain ventures.
The firm is continuing to pursue opportunities, with its stablecoin-focused strategy reportedly delivering stronger results in 2026. This diversification could help reduce dependence on broad cryptocurrency market movements.
Brevan Howard’s recovery will depend on execution, disciplined risk management, and its ability to identify investments with sustainable growth potential. If successful, the strategy could strengthen its position among institutional digital-asset managers.
The broader message is that crypto investing is evolving beyond speculative trading. The next phase involves finding businesses capable of turning blockchain innovation into lasting commercial value.