In a bold move set to reshape the crypto investment landscape, quantitative investment firm Hilbert Group has announced a strategic partnership with Xapo Bank. The collaboration aims to introduce a new Bitcoin-denominated hedge fund, scheduled to launch in September 2024. This innovative fund is poised to attract over $200 million in initial capital, drawing investments from Xapo Bank and other institutional players throughout the year.
The core ambition behind this venture is to offer corporate clients, businesses, and professional investors unique opportunities to earn returns in Bitcoin through institutional-grade structured credit arrangements. These investment avenues, traditionally out of reach for market participants, are now becoming accessible through this partnership. According to Hilbert Group’s August 27 press release, the fund will provide a structured way for investors to not only gain exposure to Bitcoin’s price movements but also to explore structured strategies for growing Bitcoin value.
Joey Garcia, Director at Xapo Bank, heralded the fund as a “natural evolution of the asset class.” Garcia emphasized that Xapo Bank’s goal is to deliver the right investment products for those seeking more than mere exposure to Bitcoin. The focus is on creating structured opportunities to enhance Bitcoin’s value, reflecting a growing trend among investors seeking sophisticated financial products.
What sets this fund apart from Hilbert Group’s existing offerings is its fee structure. Unlike Hilbert’s typical “2% and 20%” management fee model, the new fund will feature lower fees, making it an attractive option for investors. Niclas Sandström, CEO of Hilbert Group, expressed enthusiasm about the partnership, highlighting the “close and strategic relationship” that has developed with Xapo Bank over the past year. Sandström anticipates significant growth for the fund in the coming months.
This announcement follows Xapo Bank’s recent achievement of becoming the first bank in the U.K. to offer interest-bearing Bitcoin and fiat accounts. This milestone underscores Xapo Bank’s commitment to expanding its crypto services and reflects a broader trend of traditional financial institutions embracing digital currencies.
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As the launch date approaches, the new hedge fund is expected to be a game-changer in the investment world, offering institutional-grade opportunities and innovative financial products for Bitcoin enthusiasts and professional investors alike.
