Key Takeaways
- • Prime Factor Capital Ltd., a London-based hedge fund manager, became the first cryptocurrency-focused investment firm to receive approval from U.K. regulators, according to a July 1, 2019 company statement.
- • The firm will be regulated as a full-scope alternative investment fund manager under European Union rules, enabling it to manage more than 100 million euros ($113 million) in assets.
- • The approval allows Prime Factor to target institutional investors, marking a regulatory milestone for institutional access to crypto-focused hedge funds.
- • Prime Factor was set up by former employees of BlackRock Inc. and RWE AG.
Summary
Prime Factor Capital Ltd., a London-based hedge fund manager founded by former employees of BlackRock Inc. and RWE AG, has become the first investment firm focused on cryptocurrencies to receive approval from U.K. regulators, according to Bloomberg.
The company said in a July 1 statement that it will be regulated as a full-scope alternative investment fund manager under European Union rules. This authorization will allow the firm to manage more than 100 million euros ($113 million) in assets and to target institutional investors.
The approval is notable because it provides a formal regulatory framework for a crypto-focused fund manager operating in the U.K., a market where institutional allocators have been cautious about digital asset exposure. The primary source does not provide further detail on fund strategy, performance, or the timing of its first institutional mandates.
The company said in a July 1 statement that it will be regulated as a full-scope alternative investment fund manager under European Union rules. This authorization will allow the firm to manage more than 100 million euros ($113 million) in assets and to target institutional investors.
The approval is notable because it provides a formal regulatory framework for a crypto-focused fund manager operating in the U.K., a market where institutional allocators have been cautious about digital asset exposure. The primary source does not provide further detail on fund strategy, performance, or the timing of its first institutional mandates.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.