Xapo Bank and Hilbert Capital plan to launch a bitcoin-denominated hedge fund in September.
Date: 2024-08-28 Author: Henry Casey Categories: BUSINESS
Xapo CEO Joey Garcia said the fund is a natural evolution for the asset class, allowing them to not only participate in bitcoin’s price growth but also grow its value in a structured way. Hilbert Capital will be responsible for managing the fund, providing the necessary level of expertise, security, and operational reliability.
While specifics on fees have not yet been disclosed, the companies said they will be lower than the standard 2% management fee and 20% performance fee typically charged by hedge funds. The move highlights the growing institutional interest in bitcoin and the creation of more sophisticated investment products aimed at professionals rather than retail investors.
Hilbert Group CEO Niklas Sandstrom expressed confidence that the fund will grow significantly over the next year. Hilbert Capital, part of the Hilbert Group, specializes in digital assets and uses algorithmic strategies to manage the volatility of the cryptocurrency markets.
Xapo Bank, a Gibraltar-licensed bank, also recently became the first licensed bank in the UK to offer interest-bearing US dollar and Bitcoin accounts. The bank continues to expand its services, allowing users to send up to £1 million directly to UK accounts and use Bitcoin via a universally accepted debit card.
