Key Points
Hilbert Group and Xapo Bank are partnering to launch a Bitcoin-denominated hedge fund.
The fund is expected to attract over $200 million in initial capital.
Investment firm Hilbert Group is set to manage a new Bitcoin-denominated hedge fund in partnership with Xapo Bank.
The fund, which is expected to launch in September, is anticipated to garner over $200 million in initial capital from Xapo Bank and other investors by 2024.
Objective of the Fund
The fund’s objective is to offer corporates, businesses, and professional investors the chance to generate returns in Bitcoin from institutional-grade structured credit arrangements.
According to Joey Garcia, director at Xapo Bank, the fund represents a “natural evolution of the asset class.” The goal is to provide products for participants who want exposure to Bitcoin’s price and structured ways to increase its value.
Fund’s Fee Structure and Future Expectations
The fund’s fees will be lower than those of Hilbert’s other hedge funds, which typically operate on a “2% and 20%” fee structure.
Hilbert Group’s CEO, Niclas Sandström, expressed optimism about the partnership. He mentioned that over the past year, the two entities have developed a close strategic relationship and expect the fund to grow significantly in the coming year.
This initiative follows Xapo Bank’s recent achievement as the first bank in the U.K. to offer interest-bearing Bitcoin (BTC) and fiat accounts after successfully extending its banking license to operate in the country.
