Xapo Bank is partnering with Hilbert Capital to manage a bitcoin-denominated hedge fund worth $200 million, the companies announced on Tuesday. The fund is set to launch in September and will be accessible to corporates, businesses, and professional investors.
The partnership between Xapo Bank and Hilbert Capital, the asset management division of Swedish investment firm Hilbert Group (HILB), aims to offer institutional investors a more structured approach to growing their bitcoin holdings.
“We believe that offering the right products for participants in the space who are aiming not only for exposure to the Bitcoin price but also structured ways to grow the Bitcoin value of those investments is a natural evolution of the asset class,” said Xapo Director Joey Garcia.
While specific details regarding fees have not been disclosed, the firms indicated that the fund will operate with a lower fee structure compared to the traditional “2 and 20” model commonly used by hedge funds. This model typically includes a 2% management fee and a 20% performance fee on returns.
The launch of the fund reflects growing institutional interest in sophisticated crypto products, signaling further maturation and adoption of bitcoin among professional investors. The fund will cater to those seeking more advanced financial instruments beyond what is typically available to retail investors.
The move aligns with a broader trend of increasing institutional participation in the crypto space, as firms continue to seek opportunities to capitalize on bitcoin’s potential as a store of value and hedge against traditional market volatility.
