Institutional Money: Bitfinex Lists $280 Million Bahamas-based Crypto Hedge Fund

Leading cryptocurrency exchange, Bitfinex announced on Monday that it had listed the $280 million Bahamas-based cryptocurrency hedge fund, Fulgur Alpha, on its platform. 

According to the exchange, the listing of Fulgur Alpha consolidates its position as an exchange that provides the best liquidity in Bitcoin and robust trading infrastructure that complies with the stringent requirements of institutional investors. 

Meanwhile, Fulgur Alpha, which is only accessible to professional investors, seeks to significantly increase the size of its assets under management this year and believes the launch of the crypto hedge fund today on Bitfinex is a step in the right direction.

Fulgur Alpha’s assets are reportedly held at Delchain Limited, a licensed digital asset custodian, and the regulatory aspects are being handled by a Bahamas-based fund administrator, Deltec Fund Services, which is also a division of Deltec International Group.

The Executive Head of Operations at Delchain, Bruno Macchialli said in the report:

We’re bringing a traditional fund set up to the crypto space, with a diversification of risk, making this a unique proposition that has not been seen before. This represents a blueprint for institutional investment in crypto, leveraging the required liquidity and custody solutions.

In addition to claiming the best source of liquidity in the cryptocurrency space, Bitfinex noted that trading volumes of bitcoin and other digital currency had exceeded $2 billion despite bitcoin price plunge 50 percent during a torrid 24-hour period.

Putting that into perspective, Bitfinex appears to be having a fruitful 2020, with the exchange reporting earlier this month that it had paid back $100 million of the loan it borrowed in 2018 from its subsidiary. Tether Ltd.

On the institutional front, the latest development signifies that there is still at least some large corporations getting involved with Bitcoin. Last year Coinfomania report Coinbase CEO Brian Armstrong as confirming that institutions are investing between $200M-$400M in crypto every week.