British financial regulator approved the first cryptocurrency hedge fund

London-based hedge fund Prime Factor Capital has become the first cryptocurrency investment firm to be approved by the UK Financial Supervision Authority, Bloomberg reports.

The company will be regulated by the British financial regulator as a full-fledged manager of an alternative investment fund, and will also be subject to the laws of the European Union.

Thus, Prime Factor Capital will be able to hold assets of more than 100 million euros under management.

“We focus only on one class of assets, which allowed us to become leaders in this space and gain credibility among cryptocurrency investors,” the company’s founders wrote.

Also, according to European regulations, Prime Factor Capital should hire an independent custodian who will be entrusted with the task of controlling the payment of income to investors and the assets of the fund.

As previously wrote BlockchainJournal, the company in early 2018 established the Michael Wong and Adam Grimsley, former lead portfolio managers of the investment fund BlackRock Inc. The position of executive director of Prime Factor Capital is held by Nick Nidermovve, a former trader of RWE AG in the market of energy derivatives.

Recall, according to the May data of the auditing company PricewaterhouseCoopers (PwC), against the background of the fall of the market in 2018, cryptocurrency hedge funds suffered losses by an average of 46% .

Subscribe to the BlockchainJournal news in Telegram: BlockchainJournal Live – the entire news feed, BlockchainJournal – the most important news and polls.