Xapo Bank joined forces with Hilbert Group to introduce a new hedge fund denominated in Bitcoin.
Strategic partnership to boost Bitcoin investments
Xapo Bank and Hilbert Group announced that they’re collaborating to launch a hedge fund centered on Bitcoin.
Hilbert Group’s asset management division, the Hilbert Capital will lead the project, and based on the plans, they will see an initial investment of over $200 million.
This capital will come directly from Xapo and other investors. Hilbert Group’s CEO, Niclas Sandström emphasized the strong partnership formed over the past year with Xapo Bank, and he expressed confidence in the fund’s potential for serious growth in the coming years, mostly due to the investment opportunities and the experienced team involved.
Bitcoin exposure
The fund is set to launch in September, targeting corporations, businesses, and professional investors.
The fund will allow these investors to generate returns in Bitcoin, offering a more structured and secure way to grow their investments in the cryptocurrency, unlike direct market participation.
The fund will also feature lower fees than Hilbert’s other hedge funds, which typically charge 2% in management fees and 20% in performance fees.
Xapo director Joey Garcia shared that this fund is a natural progression for them in the cryptocurrency industry, providing investors not only with exposure to Bitcoin’s price movements but also with opportunities to enhance the value of their Bitcoin holdings.
Veterans on the field
Hilbert Group specializes in managing assets through algorithmic trading strategies and already made big investments in blockchain and cryptocurrency-related projects.
These investments include the crypto data platform Coin360, the blockchain-based SaaS tool CapChap, and HAYVN, a platform for trading and custody of digital assets.
Xapo Bank on the other hand, known as the first Bitcoin-enabled bank, integrates traditional fiat currency with cryptocurrencies and expanded its operations into the UK market in the last months.
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