Xapo Bank and Hilbert Capital Launch Bitcoin-Denominated Hedge Fund

Xapo Bank, in collaboration with Hilbert Capital, the asset management division of the Swedish investment firm Hilbert Group (HILB), has announced plans to manage a pioneering bitcoin (BTC)-denominated hedge fund. This ambitious fund is set to commence operations with an initial capital of $200 million and is expected to launch in September.

The fund aims to cater to a diverse range of investors, including corporates, businesses, and professional investors, as detailed in a recent announcement made on Tuesday. Xapo’s Director, Joey Garcia, remarked, “We believe that providing the right products for participants in the space who seek not only exposure to Bitcoin’s price fluctuations but also structured methods to enhance the Bitcoin value of their investments represents a natural evolution of the asset class.”

While specific details regarding the fund’s fee structure have yet to be disclosed, it has been indicated that the fees will be “at a lower level than the typical 2% and 20% hedge funds.” This traditional fee model generally comprises a 2% management fee coupled with a 20% performance fee based on the fund’s profits.

The emergence of bitcoin hedge funds could serve as a significant indicator of the growing institutional adoption of cryptocurrency. This trend highlights the demand for sophisticated investment products that extend beyond what is generally available to retail investors, signaling a maturation of the crypto investment landscape.