U.K.’s First FCA-Authorized Crypto Arbitrage Hedge Fund Has Arrived

Bitcoinist September 11, 2019
Updated 2019/09/11 at 10:47 AM
3 Min Read

Institutional investors’ choices to invest in crypto-assets continue to expand. Now, Nickel Asset Management has raised $50 million to participate in the market through a new crypto investment fund.

Crypto Market Becoming a “High-Octane World”

Study upon study shows that interest to invest in Bitcoin and other crypto-assets continues to gain momentum. As a result, financial firms are continuously developing new financial products to target the vast potential pool of investors all over the world.

Most recently, the U.K. based hedge-fund manager Nickel Asset Management Ltd. announced that it had obtained a total for $50 million in a single venture fund to develop investment opportunities in the crypto market.

Thus, on September 9, 2019, the firm launched the Nickel Arbitrage Fund. At the announcement, Anatoly Crachilov, Founding Partner and CEO at Nickel Digital Asset Management, stated,

Our vision is that it’s simply a matter of time until digital assets become part of institutional portfolio allocation for forward-looking investors around the world, and we aim to build an institutional-quality gateway to this high-octane world of digital assets.

Nickel boasts of being U.K.’s first FCA-authorized digital assets arbitrage hedge fund. Specifically, Nickel is an authorized representative of Helford Capital Partners LLP. The fund specializes in high-frequency quantitative strategies in digital assets.

Investors Capitalize On Digital Asset Volatility

Some investors find volatility, or sharp price swings, in an asset such as Bitcoin, quite attractive. For them, as volatility increases, the potential to make a profit also increases. Obviously, with volatility, the risk factor also increases.

Indeed, trading firms such as Jane Street and Flow Traders are already exploiting cryptocurrencies’ price high volatility. To this end, these two trading firms are actively trading Bitcoin, XRP, Ethereum, Litecoin, and Bitcoin Cash. In this connection, Jane Street and Flow traders are authorized participants for the Amun Crypto exchange-traded product (ETP).

Now, Nickel joins the growing number of firms focusing on cryptocurrencies and their inherent volatility. The firm specializes in dealing with volatility. Nickel’s website explains, “the firm maintains market neutral position, generating returns through volatility, market inefficiencies, and price dislocations.”

What do you think of institutional investors’ interest in crypto-based hedge funds? Let us know what you think in the comments below.


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