Hilbert Group has partnered with Xapo Bank to launch a new Bitcoin-denominated hedge fund, targeting over $200 million in expected capital. The fund is set to begin operations in September and aims to attract substantial investments throughout 2024.

The primary goal of this initiative is to offer corporates, businesses, and professional investors the chance to generate returns in BTC through institutional-grade structured credit arrangements. These opportunities are typically not available directly in the market.

Joey Garcia, director at Xapo Bank, described the fund as a natural progression for the asset class. The fund aims to provide participants not only with exposure to Bitcoin prices but also with structured methods to grow the value of their Bitcoin holdings.

The fund will feature lower fees compared to Hilbert Group’s other hedge funds, which usually follow a “2% and 20%” fee structure. Niclas Sandström, CEO of Hilbert Group, expressed confidence in the partnership, highlighting the close and strategic relationship developed with Xapo Bank over the past year. Sandström expects the fund to see significant growth in the coming year.

This initiative follows Xapo Bank’s recent achievement as the first bank in the U.K. to offer interest-bearing Bitcoin and fiat accounts, subsequent to extending its banking license to operate in the country.

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