FCA-Approved Crypto-Arbitrage Fund Raises $50 Million

September 10, 2019 | Digital Assets, Hedge Funds

A London-based hedge fund has officially launched a cryptocurrency-focused ‘Nickel Arbitrage Fund.’

The Nickel Arbitrage Fund has raised $50 million within two months and won rare approval from UK regulators. Investors included funds of funds and family offices in the UK, Europe, North America, and Singapore.

Arbitrage to exploit volatility

The new fund will take advantage of differences in prices of cryptocurrencies on digital exchanges. It will buy a crypto-asset on one exchange and sell it on another where the price is higher.

According to Alek Kloda, portfolio manager, the new fund would be profitable so long as digital assets and their derivatives trade on global exchanges.

The fund will earn regular returns for investors through arbitrage as well as trading and investing using proprietary trading systems.

It will also deploy more traditional strategies such as triangular arbitrage, futures basis trades, swap trading, and volatility arbitrage.

Regulated Fund

Apart from being FCA-approved, the fund has registered as a full-scope alternative investment fund manager under European Union rules.

“We aim to build an institutional-quality gateway to this high-octane world of digital assets,” said Anatoly Crachilov, CEO.

Though the fund is currently ‘soft-closed,’ the fund may reopen for a limited time later this year.

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