UK’s first licensed crypto fund closes due to lack of investors
The first cryptocurrency hedge fund to receive official UK approval is closing. Writes about this Financial News.
Prime Factor Capital was founded by former executives at investment giant BlackRock and licensed by UK regulators a year ago. Since its launch in 2018, Prime Factor has struggled to attract customers, the post said..
“We can confirm that the fund, despite the monthly average of more than 4%, is being liquidated due to insufficient demand from institutional investors,” said Prime Factor CEO Nick Niedermowe..
In July 2019, the company announced that it was allowed to provide services as an alternative investment fund manager. Back then, this move was seen as an important achievement towards the spread of cryptocurrencies in the broader financial industry..
Financial News sources claim that the fund was unable to succeed in raising assets and has been trying to sell its stake in its management company over the past 6-12 months. In May, he began negotiations to transfer the license to another market participant.
In his blog on July 1, 2019, Prime Factor wrote that the approval of British regulators would allow him to manage assets of more than € 100 million. According to available information, from June 25, the company is no longer regulated by the UK Financial Conduct Authority. The Foundation has confirmed the fact of canceling its license.
Prime Factor was backed by Entrepreneur First incubator and venture capital firm Speedinvest. Partner of the latter, Marcel van der Heijden, said: “Unfortunately, Prime Factor Capital liquidated its fund due to insufficient demand from institutional investors, while protecting the interests of investors and adhering to the requirements of the regulator. We hoped for a more positive outcome, but we are proud to work with PFC and will continue to support them. “.
Earlier, the head of Galaxy Digital Mike Novogratz admitted that if institutional investors do not come to the cryptocurrency market, his company may face a similar ending..
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