BH Digital Asset Fund falls 29.5% in 2025 on illiquid VC

brevan howard’s BH digital asset Fund fell 29.5% in 2025, its worst year since launch, with the primary drag coming from markdowns in private and venture-style holdings, as reported by the Financial Times. The same report noted Bitcoin slipped by roughly 6% over the year, indicating illiquid marks, not liquid crypto beta, explain most of the gap. It also documented prior gains of +43% in 2023 and +52% in 2024, underscoring high performance dispersion across cycles. The report additionally flagged a leadership transition at the digital unit and continued venture investments, suggesting the franchise remains active despite the drawdown.

Mechanically, private/venture positions are valued through periodic marks that can lag public markets. When funding rounds slow and comparable multiples compress, marks reset lower, amplifying net asset value declines. Unlike exchange-traded tokens, these level-3 style assets lack continuous pricing, so appraisal updates can cluster losses. That process-based dynamic is consistent with a return profile that underperforms liquid benchmarks during downcycles.

Why this matters for Brevan Howard crypto fund investors

For investors, the mix of liquid tokens and illiquid private positions can widen tracking error versus Bitcoin and extend recovery timelines. Valuation lags also increase uncertainty between audit cycles, so reported NAVs may adjust as new information or financing rounds arrive. These are structural features of hybrid liquid/illiquid vehicles rather than signs of liquidity stress.

Fee-sensitive outcomes are in focus. Profits shared at Brevan Howard’s UK partnership fell to £61.4 million alongside a 20.7% year-over-year decline in fee income, as reported by The Times, indicating revenue pressure that may influence product design and capacity decisions.

The leadership handover at the digital asset unit, together with ongoing venture deployments, signals an attempt to balance liquid trading with longer-duration private deal flow. In practice, that can diversify returns but also embeds valuation and liquidity dispersion versus pure-beta strategies. Any strategic recalibration will likely emphasize risk controls around position sizing, pacing of private commitments, and interaction with liquid books.

Comparative pressure has intensified as macro peers posted strong gains in 2025, making underperformance more visible. After that backdrop, one industry analysis drew a sharp contrast: “Brevan Howard’s flagship Master Fund eked out only a +0.8% gain in 2025 (Alpha Strategies +8.0%)… By comparison, Bridgewater’s flagship Pure Alpha posted about +33% … Discovery Capital about +36% … Even smaller peers like Rokos … and D.E. Shaw’s macro arm … crushed Brevan’s results,” said Disruption Banking.

Performance context and benchmarks

Track record: +43% in 2023 and +52% in 2024

As noted earlier, the fund posted back-to-back double‑digit gains before the 2025 reversal. The sequence illustrates how liquid crypto beta and illiquid marks can compound upside in strong markets.

2025 comparison: Bitcoin near -6% vs fund -29.5%

The 2025 gap reflects private/venture markdowns exceeding the mid‑single‑digit decline in Bitcoin referenced above. Such dispersion is typical when illiquid holdings reprice while listed coins move less.

At the time of this writing, Coinbase Global (COIN) traded around $164 with a roughly 35% one‑month decline, based on Nasdaq data. This context underscores the broader volatility across listed crypto‑exposed equities.

FAQ about Brevan Howard crypto fund

How did the fund perform compared with Bitcoin and other crypto hedge funds in 2025?

Down 29.5% versus Bitcoin near -6%. Broader crypto hedge funds also faced pressure, though dispersion was high.

Did private and venture-style investments drive the underperformance, and how large is that exposure?

Yes. Private/venture marks were the primary drag. The fund holds meaningful illiquid exposure; specific sizing was not disclosed.