Bitfinex, a Taiwan-based cryptocurrency exchange and partner firm of stablecoin Tether (USDT), has launched a $280 million crypto hedge fund which is accessible to only institutional investors.
Bitfinex made the announcement in a blog post published on its website on Monday, March 16. According to the announcement, the leading digital asset trading platform has onboarded Fulgur Alpha, a $280 million Bahamas-based absolute returns crypto hedge fund cementing its position as the leading source of liquidity for institutional investors in the crypto space.
According to details, the crypto hedge fund assets will be held at Delchain Limited, a licensed provider of custody, banking, capital markets and initial offering advisory solutions for digital assets. Deltec Fund Services, a Bahamas-based fund administrator and division of Deltec International Group, will supervise the regulatory requirement of the project.
Bruno Macchialli, Executive Head of Operations at Delchain, commented:
“We’re bringing a traditional fund set up to the crypto space, with a diversification of risk, making this a unique proposition that has not been seen before. This represents a blueprint for institutional investment in crypto, leveraging the required liquidity and custody solutions.”
According to Bitfinex,
“Fulgur Alpha’s launch on Bitfinex will put the hedge fund among the three biggest on an exchange widely recognised as providing the best liquidity in Bitcoin.”
The hedge fund is only accessible to institutional investors and according to Paolo Ardoino, chief technology officer (CTO) of Bitfinex, the minimum investment for accredited investors is $10 million.
The exchange said:
“The onboarding of Fulgur Alpha cements Bitfinex’s place as an exchange offering a robust trading infrastructure that meets the stringent requirements of institutional investors. Trading volumes of bitcoin and other cryptocurrencies on Bitfinex exceeded $2 billion during a torrid 24-hour period which saw the price of bitcoin plunge 50 percent.”
Bitfinex, founded in 2012, is best known for its state-of-the-art services for digital currency traders and global liquidity providers. The businesses lines of the exchange focuses on providing unparalleled support, tools, and innovation for professional traders and liquidity providers around the world.
While BitMEX and Gemini briefly went offline last week due to market turbulence which saw an abrupt bitcoin price plunge, Bitfinex still managed to process trading volumes that exceeded $2 billion.
Paolo Ardoino commented:
“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.”