Bitfinex Lists $280 Million Crypto Hedge Fund for Institutional Investors
Popular cryptocurrency exchange bitfinex has announced it onboarded a $280 million cryptocurrency hedge fund, Fulgur Alpha, in a move to consolidate its position as the “leading source of liquidity” for institutional investors in the crypto space.
According to a press release shared with CryptoGlobe, Fulgur Alpha is a Bahamas-based absolute returns crypto hedge fund only accessible to professional investors, that’s looking to increase the size of its assets under management this year. Absolute returns funds are designed to provide investors with steady returns, irrespective of market conditions.
The funds’ assets are to be held at Delchain Limited, a licensed custody provider. Delchain’s Executive Head of Operations, Bruno Macchialli, was quoted as saying:
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 represents a blueprint for institutional investment in crypto, leveraging the required liquidity and custody solutions.
The exchange touts onboarding Fulgur Alpha “cements Bitfinex’ s place as an exchange offering a robust trading infrastructure.” The trading platform is providing trading infrastructure to the fund.
It’s worth noting that in January of this year crypto hedge funds experienced significant returns, with their 2020 return for the first two months being of 17.82%. Data from March isn’t yet available, but their performance may turn red as the crypto market endured a massive sell-off last week, that saw BTC lose nearly half its value.
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