Key Takeaways
- • Brevan Howard's BH Digital Asset fund declined 29.5% in 2025, marking its worst annual performance since inception in 2021, driven by broad cryptocurrency sell-offs and weakness in technology stocks.
- • The fund significantly underperformed Bitcoin, which fell only 6% in 2025, despite the strategy's stated focus on liquid digital currencies and blockchain venture investments.
- • Assets under management in the digital assets unit stood at approximately $2.4 billion at the start of 2025, following exceptional returns of 43% in 2023 and 52% in 2024.
- • Leadership transition occurred amid the downturn: Gautam Sharma, the fund's chief executive and chief investment officer, departed and was replaced by Chris Rayner-Cook, formerly head of trading and financing at Coinbase.
- • The setback underscores vulnerability in crypto-focused hedge fund strategies during periods of technology sector stress and digital asset volatility, despite institutional backing from billionaire co-founder Alan Howard.
Summary
Brevan Howard's flagship cryptocurrency fund experienced a sharp reversal in 2025, suffering a 29.5% loss as broad sell-offs across digital assets pressured one of the hedge fund industry's most visible players in the sector. According to the Financial Times, the BH Digital Asset fund, which combines trading of liquid cryptocurrencies with venture-style investments in blockchain-related businesses, delivered its worst annual result since launch in 2021.
The decline represents a dramatic turnaround from the fund's recent performance trajectory. Over the preceding two years, the strategy generated returns of 43% in 2023 and 52% in 2024, demonstrating strong performance in favorable market conditions. The 2025 drawdown was significantly steeper than Bitcoin's 6% decline for the year, indicating the fund's portfolio construction and leverage positioning amplified losses relative to the broader asset class. At the start of 2025, Brevan Howard's digital assets unit managed approximately $2.4 billion, with the bulk of capital concentrated in the BH Digital Asset fund.
The difficult year coincided with a significant leadership change within the fund's management structure. Gautam Sharma, who served as chief executive and chief investment officer, departed from the position and was replaced by Chris Rayner-Cook, formerly head of trading and financing at Coinbase. The transition occurred as cryptocurrencies faced headwinds from weakness in technology stocks and broader concerns about artificial intelligence-driven market disruption affecting the digital assets sector.
The performance deterioration reflects structural challenges facing cryptocurrency-focused hedge fund strategies during periods of macro uncertainty and sector-wide volatility. Despite backing from Alan Howard, Brevan Howard's billionaire co-founder and an early vocal proponent of digital assets, the fund's diversified approach combining liquid trading with venture investments in blockchain businesses proved insufficient to offset the 2025 market environment, raising questions about risk management and positioning within institutional crypto strategies.
The decline represents a dramatic turnaround from the fund's recent performance trajectory. Over the preceding two years, the strategy generated returns of 43% in 2023 and 52% in 2024, demonstrating strong performance in favorable market conditions. The 2025 drawdown was significantly steeper than Bitcoin's 6% decline for the year, indicating the fund's portfolio construction and leverage positioning amplified losses relative to the broader asset class. At the start of 2025, Brevan Howard's digital assets unit managed approximately $2.4 billion, with the bulk of capital concentrated in the BH Digital Asset fund.
The difficult year coincided with a significant leadership change within the fund's management structure. Gautam Sharma, who served as chief executive and chief investment officer, departed from the position and was replaced by Chris Rayner-Cook, formerly head of trading and financing at Coinbase. The transition occurred as cryptocurrencies faced headwinds from weakness in technology stocks and broader concerns about artificial intelligence-driven market disruption affecting the digital assets sector.
The performance deterioration reflects structural challenges facing cryptocurrency-focused hedge fund strategies during periods of macro uncertainty and sector-wide volatility. Despite backing from Alan Howard, Brevan Howard's billionaire co-founder and an early vocal proponent of digital assets, the fund's diversified approach combining liquid trading with venture investments in blockchain businesses proved insufficient to offset the 2025 market environment, raising questions about risk management and positioning within institutional crypto strategies.
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