Prime Factor has become the first cryptocurrency hedge fund approved by the UK Financial Supervision Authority (FCA).
It is reported that Prime Factor, which was the first hedge fund approved to invest exclusively in cryptocurrency, will manage assets worth more than 100 million euros. The founders of the hedge fund believe that by focusing on one class of assets, even one that causes distrust in the market, they will surpass their global competitors and become a reliable authority in the cryptocurrency investment industry.
“Most mechanisms for investing in cryptocurrencies go beyond regulators, and this is a big problem for a market with such a bad reputation,” said Adam Grimsley, COO of Prime Factor.
Despite the fact that the company has received the approval of the British regulator, it will comply with European rules. In accordance with the EU recommendations, Prime Factor is obliged to appoint a custodian to provide and confirm incomes of investors and assets of the fund, which will operate independently of the company, as well as to reconcile cash flows.
According to the company, Prime Factor manages the funds of professional and institutional investors, including wealthy individuals, family investment companies and private managers. The Prime Factor team is made up of former employees of Blackrock, Legal & General, Goldman Sachs and Deutsche Bank. Public information about the investment strategy of the company has not yet been presented.
It seems that cryptocurrency hedge funds are becoming increasingly popular. A survey conducted by Fidelity this spring showed that institutional investors are gradually entering the cryptocurrency market – 22% of them added cryptoactives to their portfolio.