A recent report has revealed that Prime Factor Capital is now the first crypto hedge fund to be approved by the Financial Conduct Authority. However, the fund still has to operate in accordance with European guidelines which allows it to possess over 100 million euros in assets under management. It is also the first firm to be granted the right to invest in the digital currency asset class exclusively.
Focusing on a Single Asset Class
The creators of the crypto investment fund believe that focusing on a single asset class, even one that is not yet trusted will make them grow exponentially, compared to their global competitors and become the trusted authority in crypto investing.
During an interview, the Chief Operating Officer at Prime Factor, Adam Grimsley said that:
“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,”
According to EU regulations, Prime Factor is expected to choose a custodian whose role is to ascertain and analyse investors’ profits and the fund’s holdings. Whoever is selected to perform this duty is expected to fulfil his or her obligations without any influence from the company and provide cash flow reconciliation.
Also, a press release from the firm stated that the company control funds for professional and institutional investors which includes high net worth individuals, family offices, and private wealth managers.
Although no details regarding the investment strategy the company plans to use have been released to the public, the team comprises former staffs from Deutsche Bank, Goldman Sachs, and Blackrock Legal.
Meanwhile, the company’s Chief Executive Officer Nic Niedermowwe submitted a report titled “The Fallacy of Uncollateralised Stablecoins,” on the firm’s website in which he debated that there are many problems associated with uncollateralised stablecoins. He also looked into subjects like the scalability of bitcoin.
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