Further Asset Management and Canadian firm 3iQ have joined strategic forces to launch a new digital asset hedge fund designed specifically for the institutional sector. This investment vehicle, valued at 100 million dollars, was confirmed on Wednesday and includes a Bitcoin-denominated share class that allows reinvesting gains directly into the leading cryptocurrency, according to statements from official spokespersons of both companies.
The so-called Further x 3iQ Alpha Digital Fund is presented as a market-neutral strategy designed to deliver risk-managed exposure to liquid markets. The fund has been initially seeded with capital from institutional investors, family offices, and sovereign backers, demonstrating strong financial backing from its inception. Faisal Al Hammadi, managing partner at Further, highlighted that they are providing scalable, institutional-grade access to digital assets, all within a structure that has successfully passed rigorous institutional due diligence. For his part, Pascal St-Jean, CEO of 3iQ, added that this structure enables investors to confidently pursue potential double-digit returns.
One of the most innovative features of this digital asset hedge fund is its ability to accept BTC subscriptions. This specific share class was anchored by a large in-kind contribution from an unidentified Abu Dhabi-based family office. Thus, the product allows qualified participants to steadily increase their Bitcoin holdings, while maintaining long-term exposure to the asset. 3iQ, founded in 2012, continues to expand its institutional offering through regulated infrastructure, aligning with traditional compliance regulations to attract professional capital.
Will this financial vehicle mark the new standard for global institutional adoption?
The launch of this fund comes at a crucial time where demand for structured products is booming. On the other hand, this move follows a trend observed in other giants of the sector, such as Coinbase, which recently announced plans to launch its own Bitcoin yield fund. The competition to offer safe routes into cryptocurrency markets for professional investors is intensifying, as institutions seek attractive annual net yields that outperform traditional finance. This type of product validates the growing integration of cryptocurrencies into diversified and regulated investment portfolios globally.
Finally, the collaboration between Further and 3iQ sets an important precedent for asset management in the region. As more family offices and sovereign funds seek exposure to this asset class, we are likely to see a proliferation of similar vehicles prioritizing security and compliance. The market expects this digital asset hedge fund to drive greater liquidity and stability, consolidating the United Arab Emirates and Canada as key hubs for regulated financial innovation in the near future.
