Hilbert Group and Xapo Bank launch a Bitcoin hedge fund that is expected to have a capital of over $200 million.
Hilbert Group, a quantitative investment company, has announced a partnership with the crypto-friendly Xapo Bank for the management of a new Bitcoin hedge fund.
In an Aug. 27 press release, the Stockholm-headquartered company said that the fund, set to launch in September, is expected to attract over $200 million in initial capital from Xapo Bank and other investors throughout 2024.
According to the press release, the idea behind this initiative is to give corporates, business owners, and professional investors the opportunity to “generate BTC returns from institutional-grade credit arrangements that are not available directly to these participants in the market.”
Joey Garcia at Xapo Bank called the fund a ‘natural evolution of asset class,’ as the company wanted to offer products that would be suitable for those who were interested in “not just exposure to Bitcoin price but also structured methods to grow Bitcoin value”.
The fund’s fees will be lower than Hilbert’s hedge funds which operate with a fee structure of “2% to 20%”. Niclas Sandstrom, CEO Hilbert Group, expressed his optimism regarding the partnership. He noted that Hilbert Group developed a “close strategic relationship” with Xapo Bank over the past 12 months.
This latest initiative comes after Xapo Bank recently achieved, as the first U.K. bank to offer Bitcoin and fiat interest-bearing accounts.
