Key Takeaways
- • Brevan Howard's BH Digital Asset fund declined 29.5% in 2025, marking its worst calendar-year performance since the fund's inception in 2021, according to the Financial Times.
- • The fund significantly underperformed bitcoin, which fell only 6% in 2025, despite holding a portfolio that includes crypto tokens and digital asset-related companies alongside private equity and venture capital instruments.
- • BH Digital Asset posted strong gains in prior years—43% in 2023 and 52% in 2024—but reversed course as the cryptocurrency bull run faltered in 2025 despite bitcoin reaching above $100,000 in December 2024.
- • The fund's underperformance reflects broader crypto market weakness in 2025, though industry observers note that the concentration in less liquid private equity and venture capital positions likely amplified losses relative to spot bitcoin exposure.
Summary
Brevan Howard's cryptocurrency-focused fund experienced a severe drawdown in 2025, declining 29.5% in value—its worst annual performance since launching in 2021. The BH Digital Asset fund's losses substantially exceeded those of bitcoin itself, which fell 6% over the same period, signaling significant operational underperformance during a challenging year for digital assets.
The fund's 2025 losses represent a sharp reversal from its recent track record. BH Digital Asset delivered gains of 43% in 2023 and 52% in 2024 as the cryptocurrency market recovered from 2022 lows and bitcoin surged past $100,000 in December 2024. The fund's strategy extends beyond pure crypto holdings, incorporating investments in digital asset-related companies alongside private equity and venture capital instruments—a diversification approach that proved detrimental when digital asset valuations compressed sharply in 2025.
Investors attributed the underperformance partly to the fund's structural composition. According to one hedge fund investor cited in the Financial Times report, "There are a lot of private equity and venture capital type instruments [in BH Digital Asset]. They have underperformed bitcoin but to give them credit, last year was terrible for crypto." This suggests that less liquid, longer-duration positions in venture capital and private equity became significant performance drags as cryptocurrency market sentiment deteriorated.
The broader crypto market downturn in 2025 created challenging conditions across digital asset strategies. While bitcoin's 6% loss was relatively modest compared to historical volatility, the wider ecosystem of tokens and blockchain-related companies experienced more severe pressure, particularly impacting funds with concentrated exposure to venture-backed crypto projects and emerging digital asset platforms. Brevan Howard declined to provide additional commentary on the fund's performance beyond the Financial Times reporting.
The fund's 2025 losses represent a sharp reversal from its recent track record. BH Digital Asset delivered gains of 43% in 2023 and 52% in 2024 as the cryptocurrency market recovered from 2022 lows and bitcoin surged past $100,000 in December 2024. The fund's strategy extends beyond pure crypto holdings, incorporating investments in digital asset-related companies alongside private equity and venture capital instruments—a diversification approach that proved detrimental when digital asset valuations compressed sharply in 2025.
Investors attributed the underperformance partly to the fund's structural composition. According to one hedge fund investor cited in the Financial Times report, "There are a lot of private equity and venture capital type instruments [in BH Digital Asset]. They have underperformed bitcoin but to give them credit, last year was terrible for crypto." This suggests that less liquid, longer-duration positions in venture capital and private equity became significant performance drags as cryptocurrency market sentiment deteriorated.
The broader crypto market downturn in 2025 created challenging conditions across digital asset strategies. While bitcoin's 6% loss was relatively modest compared to historical volatility, the wider ecosystem of tokens and blockchain-related companies experienced more severe pressure, particularly impacting funds with concentrated exposure to venture-backed crypto projects and emerging digital asset platforms. Brevan Howard declined to provide additional commentary on the fund's performance beyond the Financial Times reporting.
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