Crypto Bank Xapo to Manage $200M Bitcoin-Denominated Hedge Fund With Hilbert Capital
Xapo Bank and Hilbert Capital, the asset management arm of Swedish investment firm Hilbert Group (HILB), plan to manage a bitcoin (BTC)-denominated hedge fund with an initial capital of $200 million.
The fund, set to launch in September, will be available to corporates, businesses and professional investors, according to an announcement on Tuesday.
13:53
Bitcoin’s Price Rallied 28% in October as Crypto Rally Widened
02:09
Key Driver Behind Bitcoin’s Price Spike; California’s Crypto Licensing Bill Signed Into Law
08:50
Robinhood Crypto General Manager Focused on ‘Removing the Barrier to the Crypto Space’
01:26
Bitcoin Investor Sentiment Shifting Towards the Negative: Glassnode
“We believe that offering the right products for participants in the space who are aiming not only for exposure to the Bitcoin price, but also structured ways to grow the Bitcoin value of those investments is a natural evolution of the asset class,” Xapo Director Joey Garcia said.
The firms have not said specifically what the fund’s fees will be, though did say they will be “at a lower level than other 2% and 20% hedge funds”. This refers to a fee structure where the manager charges 2% as a management fee and 20% as a performance fee on the fund’s upside.
The growth of bitcoin hedge funds could be seen as a barometer for increasing institutional adoption of crypto, as the investment class signals demand for sophisticated products beyond what can be offered to retail investors.
Edited by Parikshit Mishra.
Disclosure
Please note that our
privacy policy,
terms of use,
cookies,
and
do not sell my personal information
has been updated
.
CoinDesk is an
award-winning
media outlet that covers the cryptocurrency industry. Its journalists abide by a
strict set of editorial policies.
In November 2023
, CoinDesk was acquired
by the Bullish group, owner of
Bullish,
a regulated, digital assets exchange. The Bullish group is majority-owned by
Block.one; both companies have
interests
in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin.
CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.
:format(jpg)/s3.amazonaws.com/arc-authors/coindesk/008ae87f-5c6e-412b-816b-ded600ac5054.png)
