Bitfinex Exchange Adds $280M Crypto Hedge Fund, Targeting Institutional Investors
Crypto exchange Bitfinex has listed Bahamas based $280 million Fulgur Alpha Hedge Fund. The fund has their assets stored by custodian Delchain Limited. Fulgur Alpha relies on the absolute returns model which guarantees steady returns all through.
Bitfinex has onboarded Fulgur Alpha, a $280m Crypto Hedge Fund!
The onboarding of Fulgur Alpha cements Bitfinex’s place as an exchange offering a robust trading infrastructure that meets the stringent requirements of institutional investors.https://t.co/nXllN37cUl pic.twitter.com/EOS1fqNU2S
— Bitfinex (@bitfinex) March 16, 2020
Reports have emerged that digital asset trading platform Bitfinex have now taken up a multimillion dollar listing. Through an announcement Bitfinex has cemented their reputation as a source of liquidity for investors when they listed $280 million Fulgur Alpha hedge fund. These were sentiments shared by Bitfinex Chief Technology Officer Paolo Ardoino.
“The onboarding of Fulgur Alpha cements Bitfinex's position as the go-to venue for major crypto funds, market makers and arbitrageurs.”
Bahamas based Hedge Fund Fulgur Alpha is an absolute return fund which means that they guarantee steady returns regardless of how the market is doing. Their funds are held by custodian Delchain Limited steered by Deltec Fund Services which is also based in Bahamas.
Bitfinex’s top brass is confident that the Fulgur Alpha approach which is an emerging trend is likely to be picked up by other funds
Tailored for Institutional Investment
As highlighted by Paolo Ardoino, the fund would only be open to institutional investors coined ‘professional’. They would limit investments to minimums of $10 million. This is seen as an attempt to try and expand the assets they manage.
According to Bruno Macchialli, Executive Head of Operations at Delchain, was confident that their new approach is an instrumental benchmark for institutional investments in crypto.
“We're bringing a traditional fund set up to the crypto space, with a diversification of risk, making this a unique proposition that has not been seen before.”
This is as crypto hedge funds have seen their fortunes swell with 21.15% returns in January amidst the ongoing crisis as COVID-19 virus has had a direct impact on the day to day operations.
Notably Hedge funds have increased their fortunes when they included crypto assets. This was witnessed first-hand when Bill Miller’s Hedge fund saw 46% increment in the first half of 2019 that were directly linked to BTC and in part Amazon.
Not available to US markets yet
They have however been keen to exclude US and Bahama’s investors amongst other restricted jurisdictions such as North Korea and Iran.