In an attempt to raise liquidity for institutional crypto investors, the main cryptocurrency exchange company Bitfinex, the sister company of stablecoin issuing company Tether (USDT), says it has raised a multimillion-dollar crypto hedge fund called Fulgur Alpha.
The exchange press release says the Bahamas-based Fulgur Alpha is a $ 280 million “absolute pay-per-view crypto hedge fund”, meaning that it is designed using a variety of strategies to generate a stable income, regardless of what the market is doing.
However, the fund is only available to professional investors, says Bitfinex, and aims to increase the size of assets under management for the current year. Fulgur Alpha’s assets are owned by Delchin Limited, a licensed trustee, banking, capital markets provider and start-up digital asset consulting company, with its regulatory aspects of the Bahamas-based fund administrator and Deltec International Group Division, called Deltec Fund Services.
“A key aspect of this listing is that the fund trades almost exclusively on Bitfinex,” said Paolo Ardino, chief technology officer at Bitfinex, saying that “[Bitfinex] has the most liquidity books.”
However, according to the EurekaHedd Cryptocurrency Currency Index, crypto hedge funds returned -1.31% in February, + 19.38% in January and 8.95% in January. Their historical monthly results chart, from 2013, shows that January growth was the largest since May 2019, with the February decline being the smallest so far, the lowest since the hedge fund database provider EurekaHedg.
Speaking of hedge funds, as of late February, the New York hedge fund Fortress Investment Group has allocated $ 1,300 to Bitcoin because it seems to buy creditor claims from the mountain. Gox, the cryptocurrency exchange that crashed in 2014, is owned by thousands of BTC users.