Introducing a $200 Million bitcoin-Denominated Hedge Fund by Xapo Bank and Hilbert Capital
Xapo Bank and Hilbert Capital are diving into the world of cryptocurrencies with the upcoming launch of a substantial $200 million bitcoin-denominated hedge fund. This initiative is scheduled to kick off in September and is aimed at catering to corporate entities, businesses, and professional investors looking to gain exposure to the world of bitcoin.
The motive behind this move, as stated in the recent announcement, is to provide market participants not just with exposure to bitcoin's price fluctuation but also with structured methods to enhance the value of their investments in bitcoin. Xapo Director Joey Garcia emphasized the importance of operating the fund with a high level of investment experience, security, and operational integrity, underscoring the crucial role that Hilbert plays as a key partner in this endeavor.
Fund Fees: Below the Standard Threshold
While specific fee details have not been disclosed by the firms, it has been indicated that the fees associated with this hedge fund will be lower than the industry-standard rates of 2% management fees and 20% performance fees prevalent in traditional hedge funds. This move sets the stage for greater transparency and competitiveness in the institutional investment landscape for bitcoin.
This strategic step by Xapo Bank and Hilbert Capital sheds light on the increasing institutional interest in bitcoin, showcasing a shift towards more sophisticated investment products tailored for a market beyond individual retail investors.
Niclas Sandström, the CEO of Hilbert Group, expressed optimism regarding the fund's growth potential in the upcoming year given the robust investment opportunity it presents and the expertise of the team steering the operations.
In-Depth Insights into Hilbert Capital and Xapo Bank
Hilbert Capital, the asset management arm of Hilbert Group, is a reputable Swedish investment firm listed on the Nasdaq First North Growth Market. Specializing in digital assets, the firm focuses on quantitative investment strategies, particularly in cryptocurrencies and blockchain technologies, exemplified by offerings such as the Hilbert V30 Fund that leverages algorithmic trading to navigate the volatile digital asset markets.
On the other hand, Xapo Bank stands as a Gibraltar-licensed digital banking institution at the forefront of cryptocurrency services. Noteworthy is their latest move to introduce an interest-bearing bitcoin account to UK users, marking a pioneering milestone in their journey towards becoming the first licensed bank in the United Kingdom to offer a combined interest-bearing USD and bitcoin account.
Founded in 2013, Xapo Bank has evolved from a bitcoin wallet service to a comprehensive digital retail bank and Virtual Asset Service Provider (VASP) custodian. The bank's offerings guarantee USD deposits equivalent to €100,000, maintaining a security level synonymous with traditional banking institutions.
One of the standout features of Xapo Bank's offerings includes a bitcoin account that yields 1% interest without the need for staking, lending, or asset lockups. Members can seamlessly utilize bitcoin through a universally accepted debit card, explore investment opportunities in S&P 500 stocks, or diversify their portfolio with select cryptocurrencies.
Moreover, Xapo Bank bridges traditional banking and digital asset services by integrating stablecoin payment rails with USD bank accounts, presenting users with a seamless bridge between the conventional banking system and the burgeoning realm of digital assets.
