UK FCA Approves First Crypto Hedge Fund In The Country, Prime Factor Capital Asset Manager
The crypto world has huge news from the United Kingdom this week. Prime Factor Capital, a company created by former Black Rock and RWE AG employees, has become the first crypto hedge fund of the U. K. now that the regulators have approved it.
Prime Factor Capital, which will be based in London, has obtained a license from the Financial Conduct Authority (FCA) that will let it operate as a “full-scope Alternative Investment Fund Manager”.
A statement from the company was released yesterday, July 1, that the company was now regulated and that it would be managed under the current rules of the European Union. With this license, the company will be able to manage over $100 million EUR in assets.
It was also reported that this company will be focused on institutional investors, a field that is growing in the crypto market these days.
According to the Chief Operating Officer of the company, Adam Grimsley, the crypto market only has such a bad rep because most crypto “vehicles” are largely unregulated. This is a $300 billion USD market, however, so it is important to close this gap in order to attract the biggest investors.
Since Grimsley has experience from BlackRock, it is easy to see that this will possibly be a successful enterprise. He teamed up with Nic Niedermowwe and Michael Wong, both who worked on RWE AG before, so they do not lack the expertise in order to create a company that will cater to the needs of these investors.
Part of their goal is to focus on a single asset class (cryptocurrencies) in order to surge ahead of their competitors and become one of the first trusted companies in the field. Since not that many companies are actually trusted by more traditional investors, they see the gap as an opportunity to make their names in the market by offering great services.
The target of the company will be high net worth individuals, private wealth managers and family offices. However, there is no official strategy made public at the moment about how the company will make a profit.
In order to start its business, the company will still have to solve a few things, however. For instance, Prime Factor needs to appoint a custodian under the current EU regulations to validate the holding of the funds. The custodian needs to be completely independent in order to be approved.
According to the CEO of the company, Niedermowwe, being regulated by the FCA will really give the company some help, as the U. K. is a very competitive and important market and they believe that the company can help to clean up the name of the crypto world with its offerings.
Recently, the company received investments during an equity round from companies such as Speedinvest and Entrepreneur First.