Key Takeaways
- • Brevan Howard, a $40 billion global macro hedge fund, has announced a major sale of Bitcoin assets through its dedicated digital asset management division, BH Digital.
- • BH Digital manages approximately $2.3–$2.4 billion in assets, with significant exposure to Bitcoin via call and put options on the iShares Bitcoin Trust (IBIT), including call options worth over $400 million on approximately 8 million IBIT shares.
- • The fund's digital assets unit posted a 30% loss in 2025, marking its worst performance since inception, following a broader cryptocurrency market decline that year.
- • Despite 2025 losses, BH Digital has demonstrated strong historical returns, with 43% gains in 2023 and 52% gains in 2024, and has recovered with approximately 20% gains year-to-date in 2026.
- • The sale reflects broader institutional repositioning in cryptocurrency markets and highlights the volatility within Brevan Howard's otherwise diversified $40 billion portfolio.
Summary
Brevan Howard Asset Management, the prominent global macro hedge fund with $40 billion in assets under management, has announced a significant liquidation of Bitcoin positions through its BH Digital unit, the firm's dedicated digital asset management division. According to reports, BH Digital holds substantial options exposure to Bitcoin, including call options valued at over $400 million on approximately 8 million shares of the iShares Bitcoin Trust (IBIT), alongside related put option positions.
BH Digital, which manages approximately $2.3 billion to $2.4 billion in digital assets, has experienced pronounced volatility in recent years. The fund suffered a 30% loss in 2025, representing its worst annual performance since launch, amid the broader cryptocurrency market downturn that characterized that period. This marked a sharp reversal from the unit's earlier success: BH Digital achieved 43% returns in 2023 and 52% in 2024, demonstrating the substantial swings inherent in digital asset investments.
The cryptocurrency fund has shown signs of recovery in 2026, posting gains of approximately 20% year-to-date as of the reporting period in February. This recovery suggests management's strategic reassessment of Bitcoin positioning following the 2025 drawdown. The sale of BTC assets reflects both tactical rebalancing and broader institutional sentiment shifts in the cryptocurrency market.
The move underscores the importance of digital assets within Brevan Howard's broader investment mandate while highlighting the outsized impact that concentrated crypto positions can have on institutional portfolios. BH Digital's performance trajectory—marked by exceptional gains in 2023–2024 followed by significant 2025 losses and 2026 recovery—exemplifies the risk-return profile that institutional investors must carefully evaluate when allocating to alternative asset classes with elevated volatility.
BH Digital, which manages approximately $2.3 billion to $2.4 billion in digital assets, has experienced pronounced volatility in recent years. The fund suffered a 30% loss in 2025, representing its worst annual performance since launch, amid the broader cryptocurrency market downturn that characterized that period. This marked a sharp reversal from the unit's earlier success: BH Digital achieved 43% returns in 2023 and 52% in 2024, demonstrating the substantial swings inherent in digital asset investments.
The cryptocurrency fund has shown signs of recovery in 2026, posting gains of approximately 20% year-to-date as of the reporting period in February. This recovery suggests management's strategic reassessment of Bitcoin positioning following the 2025 drawdown. The sale of BTC assets reflects both tactical rebalancing and broader institutional sentiment shifts in the cryptocurrency market.
The move underscores the importance of digital assets within Brevan Howard's broader investment mandate while highlighting the outsized impact that concentrated crypto positions can have on institutional portfolios. BH Digital's performance trajectory—marked by exceptional gains in 2023–2024 followed by significant 2025 losses and 2026 recovery—exemplifies the risk-return profile that institutional investors must carefully evaluate when allocating to alternative asset classes with elevated volatility.
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.