Hilbert Group has partnered with crypto-friendly Xapo Bank to manage a new hedge fund denominated in Bitcoin.
In an August 27 press release, the Stockholm-based investment firm announced that the Bitcoin-denominated fund will launch in September, with expectations of raising over $200 million in initial capital from Xapo Bank and other investors throughout 2024.
The initiative aims to offer corporations, businesses, and professional investors the chance to “earn returns in BTC through institutional-grade structured credit arrangements, which are typically inaccessible to these participants directly in the market,” according to the press release.
Joey Garcia, director at Xapo Bank, described the fund as a “natural evolution of the asset class.” He emphasised that the company aims to provide products tailored for participants seeking not only exposure to Bitcoin’s price but also structured strategies to grow 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 with Xapo Bank over the past year. He added that both companies anticipate significant growth for the fund in the coming year.
Xapo Bank’s latest initiative builds on its recent success by introducing a new financial product for its UK customers, allowing them to earn daily interest on Bitcoin deposits. Interest will be paid in Satoshis, the smallest unit of Bitcoin, with variable rates on balances up to 5 BTC. The bank’s new Bitcoin accounts offer a 1% interest rate without requiring users to stake, lend, or lock up their cryptocurrency.
Customers can also use Xapo’s debit card to spend their Bitcoin, make direct GBP payments to UK bank accounts, invest in S&P 500 stocks, acquire select cryptocurrencies, and access stablecoin payment rails through USD bank accounts.
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