Hilbert Capital, the asset management division of Hilbert Group, partnered with Xapo Bank to launch a new Bitcoin-denominated hedge fund in September.
The fund is set to launch with more than $200 million from Xapo Bank and other investors. The partnership builds on Hilbert’s footprint in digital asset management that includes the launch of its Coinbase SMA in early January.
The new crypto fund will offer corporates, businesses and professional investors the opportunity to generate returns in BTC from institutional-grade structured credit arrangements, which are not available to those participants directly in the market.
“Over the last 12 months, we have developed a close and strategic partnership with our partner Xapo Bank, a veteran in the Bitcoin space and a tier-one financial institution in the digital asset space,” said Niclas Sandström, CEO of Hilbert Group. “Given the quality of the investment opportunity, we anticipate that the Fund will grow meaningfully over the next year.
Xapo views the offering as being ideal for participants who are aiming for exposure to the Bitcoin price. “Having the fund operated with the right level of investment experience, security and operational integrity is fundamental and we see Hilbert as a key partner in that offering,” said Joey Garcia, director of Xapo Bank, which is based in Gibraltar.
The Hilbert fund will charge fees at a lower level than Hilbert’s other “2% and 20%” hedge funds.
According to Sandström, Hilbert is two years into its five-year plan of being a global-leading asset management firm. “We have invested heavily in our investment and operations expertise and infrastructure to enable us to manage attractive investment solutions and partner with the world’s best financial institutions. Xapo is one of the very best,” he added.
Sandström also acknowledged the pivotal role of Richard Murray, CEO of Hilbert Capital, in developing and securing this partnership. Murray joined Hilbert from hedge fund firm Cevian Capital in 2022.
