Bitfinex, a major digital asset trading platform, has listed its first-ever cryptocurrency hedge fund.
Announcing the news on March 16th, Bitfinex reported that the Bahamas-based hedge fund, Fulgur Alpha will be worth $280 million and will only be accessible to institutional investors. The Fulgur Alpha fund is aimed at institutional investors, as the minimum investment size is set at $10 million.
According to Bruno Macchialli, an Executive Head of Operations at Delchain, the fund is set up in a traditional way that features risk diversification and represents a blueprint for institutional investment in virtual assets. Paolo Ardoino, CTO at Bitfinex, added:
It is really rare that a fund of this size chooses to trade almost exclusively in a single location. The onboarding of Fulgur Alpha cements Bitfinex's position as the go-to venue for major crypto funds, market makers and arbitrageurs.
Fulgur Alpha’s assets are held at Delchain Limited, a licensed custodian of digital assets, the official announcement reports. The regulatory aspects of this project are under the supervision of Deltec Fund Services, a Bahamas-based fund administrator and division of Deltec International Group.
Bitfinex reports, that the exchange is leveraging its position as one-stop shop for crypto trading offering margin trading with up to 5x leverage, access to a perpetual swap contract offering 100x leverage through its affiliate, iFinex Financial Technologies Limited.
Institutional investments in digital assets are seeing a recovery after a crypto winter in 2018. Although the virtual currencies are still an emerging asset class, many countries develop regulatory frameworks to allow financial institutions to trade virtual assets. The increasing interest of institutional investors around the world show how the cryptocurrencies are maturing.