Hilbert Capital, a division of Hilbert Group AB, has entered into a significant partnership with Xapo Bank to manage a new Bitcoin hedge fund, according to a press release sent to Bitcoin Magazine.
The fund is expected to receive over $200 million in seed capital from Xapo Bank and other investors, according to the statement. The initiative was launched to allow companies, institutions and professional investors the option to generate returns in Bitcoin through institutional-level structured credit arrangements.
“We believe that offering the right products to players in this space who are looking to not only gain exposure to the price of Bitcoin, but also a structured way to grow the value of Bitcoin for those investments is a natural progression for the asset class,” said Joey Garcia, director of Xapo Bank. “Operating the fund with the right level of investment expertise, security and operational integrity is essential and we see Hilbert as a key partner in this offering.”
The fund is also set to offer fees at a lower rate than Hilbert’s standard hedge fund fees of “2% and 20%,” according to the press release.
“Over the past 12 months, we have developed a close and strategic partnership with Xapo Bank, a veteran Bitcoin bank and a top-tier financial institution in the digital asset space. Given the investment opportunity and the quality and expertise of the team, we expect the fund to grow significantly over the coming year,” commented Niklas Sandström, CEO of Hilbert Group.