Key Takeaways
- • Brevan Howard's BH Digital Asset fund posted a 29.5% loss in 2025, marking its worst annual performance since the crypto-focused fund's launch in 2021, significantly underperforming bitcoin which declined only 6% during the same period.
- • The fund's 2025 collapse reverses two consecutive years of strong gains—43% in 2023 and 52% in 2024—as the cryptocurrency market experienced a broad sell-off despite bitcoin reaching above $100,000 in December 2024.
- • The fund holds substantial exposure to private equity and venture capital instruments alongside crypto tokens and digital asset-related companies, which underperformed traditional bitcoin holdings during the downturn.
- • Brevan Howard Asset Management, which manages $33 billion in assets, faced particular challenges in early 2025 as digital asset markets experienced a sharp reversal after the prior year's bull run.
Summary
Brevan Howard's cryptocurrency-focused fund delivered its worst annual performance since inception, declining 29.5% in 2025 as digital asset markets experienced a significant correction. The BH Digital Asset fund, launched in 2021, substantially underperformed benchmark bitcoin, which fell only 6% during the same period, according to reporting by the Financial Times. The magnitude of the underperformance highlights vulnerabilities in the fund's portfolio construction and strategy during crypto market downturns.
The 2025 decline represents a sharp reversal from the fund's recent trajectory. BH Digital Asset achieved gains of 43% in 2023 and 52% in 2024, positioning it as a beneficiary of the crypto market's recovery from 2022 lows and the rally that pushed bitcoin above $100,000 in December 2024. The fund's structural composition—which includes private equity and venture capital instruments alongside crypto tokens and digital asset-related companies—created performance drag during the 2025 downturn, according to investors familiar with the portfolio. One hedge fund investor cited by the Financial Times noted that while "last year was terrible for crypto," the fund's private equity and venture capital holdings particularly weighed on returns relative to a pure bitcoin allocation.
Brevan Howard Asset Management, headquartered in London with approximately $33 billion under management, has positioned its digital assets division as a core alternative investment strategy. The sharp reversal in 2025 raises questions about portfolio diversification benefits within the digital assets space and the performance contribution of illiquid holdings during market dislocations. The fund's underperformance against bitcoin during a year when bitcoin itself posted negative returns underscores execution challenges and potential concentration risks within the underlying portfolio construction.
The 2025 decline represents a sharp reversal from the fund's recent trajectory. BH Digital Asset achieved gains of 43% in 2023 and 52% in 2024, positioning it as a beneficiary of the crypto market's recovery from 2022 lows and the rally that pushed bitcoin above $100,000 in December 2024. The fund's structural composition—which includes private equity and venture capital instruments alongside crypto tokens and digital asset-related companies—created performance drag during the 2025 downturn, according to investors familiar with the portfolio. One hedge fund investor cited by the Financial Times noted that while "last year was terrible for crypto," the fund's private equity and venture capital holdings particularly weighed on returns relative to a pure bitcoin allocation.
Brevan Howard Asset Management, headquartered in London with approximately $33 billion under management, has positioned its digital assets division as a core alternative investment strategy. The sharp reversal in 2025 raises questions about portfolio diversification benefits within the digital assets space and the performance contribution of illiquid holdings during market dislocations. The fund's underperformance against bitcoin during a year when bitcoin itself posted negative returns underscores execution challenges and potential concentration risks within the underlying portfolio construction.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.