Hilbert Capital, a division of Hilbert Group AB, has entered into 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 more than $200 million in initial investment capital from Xapo Bank and other investors, the press release said. This initiative is being launched to provide companies, enterprises and professional investors with the opportunity to generate returns in Bitcoin through institutional-grade structured credit arrangements.
“We believe that offering the right products for participants in the space who are seeking not only exposure to the Bitcoin price, but also structured ways to grow the Bitcoin value of those investments, is a natural evolution of the asset class,” said Joey Garcia, Managing Director of Xapo Bank. “It is fundamental that the fund is managed with the right level of investment experience, security and operational integrity and we see Hilbert as a key partner in that offering.”
The fund will also offer fees lower than Hilbert’s standard “2% and 20%” hedge funds, 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,” said Niclas Sandström, CEO of Hilbert Group. “Given the investment opportunity and the quality and experience of the team, we expect the fund to grow significantly in the coming year.”