Xapo Bank and Hilbert Capital Launch $200 Million Bitcoin-Denominated Hedge Fund

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Ruholamin Haqshanas

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Ruholamin Haqshanas

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Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

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August 26, 2024

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Xapo Bank and Hilbert Capital are set to launch a $200 million Bitcoin-denominated hedge fund in September.

The fund will target corporate entities, businesses, and professional investors, providing them with an opportunity to gain exposure to Bitcoin, the firm said in an announcement on Tuesday.

“We believe that offering the right products for participants in the space who are aiming not only for 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,” Xapo Director Joey Garcia said.

“Having the fund operated with the right level of investment experience, security and operational integrity is fundamental and we see Hilbert as a key partner in that offering.”

Fund Fees Will be Lowever Than Standard

The firms have not disclosed specific fee details but indicated that the fees will be lower than the standard 2% management and 20% performance fees typically seen in hedge funds.

The creation of this fund highlights the growing institutional interest in Bitcoin, offering more sophisticated investment products beyond those available to retail investors.

“Given the investment opportunity and the quality and experience of the team, we anticipate that the Fund will grow meaningfully over the next year,” Niclas Sandström, CEO of Hilbert Group, said in a comment.

Hilbert Capital is the asset management division of Hilbert Group, a Swedish investment firm listed on the Nasdaq First North Growth Market.

The firm specializes in digital assets, focusing on quantitative investment strategies, particularly in cryptocurrencies and blockchain technologies.

Hilbert Capital is known for its systematic funds, such as the Hilbert V30 Fund, which employs algorithmic trading to navigate the volatility of digital asset markets.

Meanwhile, Xapo Bank is a Gibraltar-licensed digital banking institution specializing in cryptocurrency.

Xapo Bank to Offer Interest-Bearing Bitcoin Account to UK Users

As reported, Xapo Bank has become the first licensed bank in the United Kingdom to offer a combined interest-bearing USD and Bitcoin (BTC) account.

The offering comes as part of the bank’s expansion into the UK, facilitated by the successful passporting of its banking license.

Xapo Bank’s offering allows users to send up to £1 million GBP directly to UK-based wallets and bank accounts, with services available around the clock.

Founded in 2013, Xapo Bank has transitioned from a Bitcoin wallet service to a comprehensive digital retail bank and Virtual Asset Service Provider (VASP) custodian.

The bank guarantees USD deposits up to the equivalent of €100,000, providing a security level comparable to traditional banking institutions.

One of the standout features of Xapo Bank’s offerings is a Bitcoin account that provides 1% interest without requiring staking, lending, or asset lockups.

Members can utilize Bitcoin through a universally accepted debit card, invest in S&P 500 stocks, or purchase select cryptocurrencies.

Additionally, the bank integrates stablecoin payment rails with USD bank accounts, effectively bridging traditional banking and digital asset services.