Hilbert Group and Xapo Bank have announced the joint launch of a Bitcoin-denominated fund with an initial capital of $200 million.
Fund Launch
According to an August 27 press release, the Stockholm-based investment firm Hilbert Group has announced that the new Bitcoin-denominated fund will launch in September. The fund's initial capital will be $200 million, sourced from Xapo Bank and other major investors through the end of 2024.
Initiative Goals
The initiative aims to provide corporations, businesses, and professional investors the opportunity to earn returns in Bitcoin through institutional-grade structured credit arrangements. As stated in the press release, these opportunities are typically inaccessible to these market participants.
Partnership Details
Joey Garcia, director at Xapo Bank, described the fund as a 'natural evolution of the asset class.' He indicated that the company aims to offer products suited for participants seeking not only exposure to Bitcoin's price but also strategies to enhance its value. The fund will feature lower fees than Hilbert’s other hedge funds, which traditionally follow a '2% and 20%' fee structure. Hilbert Group CEO Niclas Sandström expressed optimism about the collaboration, highlighting the 'close and strategic relationship' developed over the past year. He added that both companies expect significant growth for the fund in the coming year.
The initiative between Xapo Bank and Hilbert Group aims to expand the available financial products for investors and strengthen their standing in the market for innovative financial services.
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