Hilbert Group partners with Xapo Bank to launch a Bitcoin-denominated hedge fund with an expected capitalization of over $200 million.
Quantitative investment firm Hilbert Group has announced a strategic partnership with crypto-friendly Xapo Bank to manage a new Bitcoin-denominated hedge fund.
On August 27 press releaseThe Stockholm-based firm said the fund, set to launch in September, is expected to attract more than $200 million in seed capital from Xapo Bank and other investors throughout 2024.
The idea behind the initiative is to provide businesses, institutions and professional investors with opportunities to “generate returns in Bitcoin from institutional-level structured credit arrangements that are not available to these direct market participants,” according to the press release.
The fund is a “natural evolution of the asset class,” said Xapo Bank Managing Director Joey Garcia, as the company wants to offer the right products for players in the space who are looking “not just for exposure to the price of bitcoin, but also for a structured way to grow the value of bitcoin.”
The fund will charge lower fees than Hilbert’s other hedge funds, which typically operate on a “2% and 20%” fee structure. Niklas Sandstrom, CEO of Hilbert Group, expressed optimism about the partnership, noting that over the past 12 months the firm has developed a “close and strategic relationship” with Xapo, adding that both expect the fund to “grow significantly over the next year.”
The latest initiative follows Xapo Bank’s initiative. Recent achievement As the first bank in the UK to offer Bitcoin (BTC) and interest-bearing fiat accounts after successfully extending its banking license to operate in the country.
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