- Prime Factor Capital has become the first bitcoin-linked hedge fund to get the nod of the FCA
- The investment manager will operate under the purview of the European Union
- Prime Wealth Capital will be able to hold over $116 million in assets under management
Prime Factor Capital, a London-based hedge fund that specializes in bitcoin and other digital assets, has gotten a license from the U.K’s Financial Conduct Authority (FCA) and the firm will now do business as a fully-regulated alternative investment fund manager, signaling that UK regulators are becoming more friendly to crypto.
FCA greenlights first bitcoin hedge fund
Per sources close to the matter, the financial watchdog of the United Kingdom, the Financial Conduct Authority (FCA) has given its seal of approval to Prime Factor Capital, a cryptocurrency-focused hedge fund manager based in London.
With the approval to operate as a full-scope alternative investment fund manager, Prime Factor Capital has now become the first cryptocurrency investment manager to achieve such a feat in the UK.
The firm will also be required to operate in accordance with the European Union financial regulations.
Prime Factor to abide by both EU and UK rules after Brexit
Following E.U guidelines make it possible for the firm to handle more than 100 million euros ($116 million) in assets under management.
The E.U. rules also make it mandatory for Prime Factor Capital to employ the services of a credible digital assets custodian which will work independently of the firm and be responsible for validating investors returns and the firm’s holdings, while also providing cash flow reconciliation.
While other hedge funds often add traditional investment instruments to their list of product offerings, Prime Factor Capital exclusively deals with cryptocurrencies and the team firmly believes that this system, coupled with the latest approval from the FCA, will give them a significant advantage over their competitors across the globe and make them a trusted name in crypto investing. Adam Grimsley, chief operating officer a Prime factor Capital reiterated that:
“Most crypto-focused investment vehicles are outside the scope of financial regulators and that’s a massive in a market that has such a bad reputation.”
Founded in 2017 by Michael Wong and Nic Niedermowwe, Prime Factor Capital manages funds for sophisticated institutional investors, family offices, private wealth managers and more.
The firm raised 500k euros ($564,000) in its seed round earlier in February 2019. The major investors were Speedinvest and Entrepreneur First.