$1 Billion in Bitcoin and Ether: One River Hedge Fund to Increase Holdings From $600 Million

Hedge fund management firm One River Asset Management has invested $600 million in bitcoin and ether with a plan to increase its holdings to $1 billion next year. The company has two cryptocurrency funds: the Bitcoin Fund and the Ethereum Fund.

$1 Billion Investment in Bitcoin and Ether

One River Asset Management has bought more than $600 million in bitcoin and ether, Bloomberg reported Wednesday. The company has two cryptocurrency funds: the Bitcoin Fund and the Ethereum Fund.

Founded by CEO Eric Peters in 2013, One River oversees about $1.6 billion in total assets under management. Peters said that he set up a new company to focus on cryptocurrencies for institutional investors. In addition to its initial purchases, he said:

One River Digital Asset Management has commitments that will bring its holdings of bitcoin and ether to about $1 billion as of early 2021.

“There is going to be a generational allocation to this new asset class. The flows have only just begun,” Peters was quoted as saying.

One River has joined forces with Alan Howard, the co-founder of Brevan Howard Asset Management, the publication detailed, adding that Howard invested in One River Digital’s funds and Brevan Howard acquired 25% of One River Asset Management in October.

In order to buy such a large amount of bitcoin and ether without triggering a spike in the prices of the cryptocurrencies, Peters executed his trades as inconspicuously as possible and finishing all buying in November before bitcoin hit $16,000, the publication noted.

One River Digital hired Northern Trust Corp. as its fund administrator and Coinbase as its initial partner for trade execution and asset custody. The funds will charge 1% fees and allow investors to sell in a day.

Another investor with One River Digital is the British investment firm Ruffer, which disclosed this week that it had invested in bitcoin which now accounts for 2.7% of its entire portfolio.