The British financial regulator approves the first crypto hedge fund
|- Prime Factor Capital will operate as a full-scope alternative investment fund manager.
- The company will comply with European legislation and target institutional investors.
The Financial Conduct Authority in the UK granted approval to a London-based Prime Factor Capital Ltd, a crypto hedge fund manager established by former employees of BlackRock Inc.
The company will operate as a full-scope alternative investment fund manager compliant with European regulation. According to the official statement published on June 1, the Fund will target institutional investors and aim to manage over 100 million euro.
“Most vehicles for investing in cryptocurrencies are outside the scope of regulators and that’s a big problem in a market that has such a bad reputation,” Adam Grimsley, Prime Factor’s chief operating officer commented as cited by Bloomberg.
Grimsley and Michael Wong - both are former employees of BlackRock, set up Prime Factor in 2017 together with Nic Niedermowwe, who previously worked as an energy derivatives trader at RWE AG.
According to Grimsley, as a full-scope alternative investment fund manager, Prime Factor will have to appoint an independent custodian to perform oversight and verify that the returns of the Fund as well as its assets are real.
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