Elwood Asset Management seeks to target institutional investors with new crypto offerings

Elwood Asset Management, a UK-based asset management firm owned by hedge-fund billionaire Alan Howard, is planning to launch a range of cryptocurrency products targeting institutional investors, Bloomberg reported.

Founded in 2018, Elwood is an investment firm specialising in digital assets. It has created the Elwood Blockchain Global Equity Index that offers exposure to global companies in developed and emerging markets that participate or have the potential to participate in the blockchain ecosystem

CEO Bin Ren told Bloomberg that the new regulated products would cover the full spectrum of crypto-assets.

The latest comments Ren follow the recent launch of a blockchain exchange-traded fund (ETF), co-developed by Invesco and Elwood Asset Management, on the London Stock Exchange.

While the interest among institutional investors to venture into the crypto space is mounting, many remain skeptical due to the uncertain regulatory outlook and concerns over money laundering and market manipulation. Given the current scenario, Ren said that blockchain makes an easier sell at the moment.

“The only way for institutions to get meaningful exposure to digital assets has been to buy Bitcoin, but many are reluctant or unable to buy Bitcoin -- and for good reason,’’ Ren said. “An ETF gives a highly liquid and regulated way to gain exposure. This is the right point to start.’’

Elwood is also planning to develop offerings linked to the trading of digital assets. The company is also open to the possibility of offering exposure to cryptocurrencies such as Bitcoin and Ethereum.