An Investment firm Elwood Asset Management backed by billionaire investor Alan Howard is planning to start a crypto fund worth a billion dollars. The new platform will aim to capitalize on the resurgent interest in the asset class following 2018’s pop.

The London-based management firm is working on the venture so that it would design cryptocurrency portfolios for institutional investors. The details of the venture are not yet in its final stage. However, it could allow investors to consider factors such as risk appetite, expected returns and liquidity requirements. Accordingly, investors will get a portfolio of funds to invest in. Cryptocurrencies are one of the best-performing assets this year. Hedge funds that list them in their portfolio are now sitting atop around 60 percent gains. The focus is now on bitcoin, the benchmark cryptocurrency. It has surged by more than 170 percent in 2019. At the same time other assets that include Litecoin, Ethereum, and Bitcoin Cash, have also posted less but modest gains.

Hedge funds solely focused on cryptocurrencies have exceeded their traditional counterparts as bitcoin revived this year. However, there are enough and more reasons for the institutions to remain skeptical. Most of the crypto funds are smaller in size. Collectively, they manage a $20 billion market. Meanwhile, the world’s largest hedge fund managers have AUM worth $100 billion. Thus, liquidity stays a major concern for the majority of crypto funds. Also, there are constant threats regarding price manipulation and fraud. Alan Howard’s $1 billion crypto fund attempts to solve some of those issues as per the source.