Hilbert Capital, a division of Hilbert Group AB, has signed a major partnership with Xapo Bank to manage a new bitcoin hedge fund, according to a press release sent to bitcoin Magazine.
The fund is expected to receive over $200 million in initial investment capital from Xapo Bank and other investors, according to the release. The initiative is being launched to enable businesses, merchants and professional investors the option to generate returns in bitcoin through institutional-grade structured credit arrangements.
“We believe that offering the right products to industry participants who are not only looking for exposure to the price of bitcoin, but also structured ways to grow the value of bitcoin from those investments is a natural evolution of the asset class,” said Joey Garcia, Director at Xapo Bank. “It is critical that the fund operates with the right level of investment expertise, security and operational integrity and we see Hilbert as a key partner in that offering.”
The fund will also offer fees at a lower rate than Hilbert's standard hedge funds, “2% to 20%,” the press release said.
“Over the past 12 months, we have developed a close and strategic partnership with Xapo Bank, a veteran in the bitcoin space and a top-tier financial institution in the digital asset space,” commented Niclas Sandström, CEO of Hilbert Group. “Given the investment opportunity and the quality and experience of the team, we anticipate the Fund will grow significantly over the coming year.”
