Key Points
- Xapo Bank and Hilbert Capital are set to launch a $200 million Bitcoin-denominated hedge fund.
- The fund, targeting corporates and professional investors, signifies growing institutional interest in cryptocurrencies.
Xapo Bank and Hilbert Capital have revealed their intention to oversee a Bitcoin-based hedge fund with an initial capital of $200 million. This fund is set to launch in September 2024, and aims to draw in corporates, businesses, and professional investors who are interested in sophisticated Bitcoin investment strategies.
Bitcoin Hedge Fund and Mainstream Adoption
On August 27, 2024, Xapo Bank entered into a partnership with Hilbert Capital, a division of Sweden’s Hilbert Group, to launch a new hedge fund. This fund seeks to provide investors with exposure to Bitcoin prices, while also offering structured ways to increase their Bitcoin holdings. According to Joey Garcia, Xapo Bank’s Director, this initiative represents a natural development in the cryptocurrency market, aimed at those seeking more advanced investment options.
While the exact fee structure for the fund remains undisclosed, both companies have assured that the fees will be more competitive than the typical 2% management and 20% performance fees seen in traditional hedge funds.
The introduction of this Bitcoin-focused hedge fund is seen as an indication of growing institutional interest in cryptocurrencies. As demand increases for more sophisticated financial products, hedge funds dedicated to digital assets like Bitcoin are becoming more prevalent among institutional investors.
The fund’s launch in September aligns with the broader trend of increasing interest in crypto investments, particularly from professional and institutional investors. The entry of established financial institutions like Xapo Bank and Hilbert Capital into the hedge fund space highlights the growing acceptance and integration of digital assets into mainstream finance.
Anticipated Lower Fees in Bitcoin-Denominated Fund
One of the notable features of this new fund is the expected fee structure, which is predicted to be more attractive than the standard hedge fund rates. Although both companies did not disclose exact fees, the move towards lower fees could further encourage institutional participation, particularly for those looking to maximize returns in the volatile cryptocurrency market.
As the fund readies for its September debut, industry experts will be closely watching to see how it performs and whether it sets a new standard for Bitcoin-related financial products. The success of this venture could pave the way for more institutional-grade offerings, further bridging the gap between traditional finance and the emerging world of digital assets.
