Further Asset Management and 3iQ Launch $100 Million Hedge Fund
A digital asset management firm based in the United Arab Emirates, Further Asset Management, has teamed up with the Canadian investment company 3iQ to unveil a significant hedge fund worth $100 million. This initiative is crafted specifically for institutional investors who are looking for structured investments in cryptocurrencies, prominently featuring a share class that is denominated in Bitcoin. This unique class is designed to reinvest profits directly into Bitcoin, allowing for compounded growth.
Further x 3iQ Alpha Digital Fund
The recently announced Further x 3iQ Alpha Digital Fund is characterized as a market-neutral, multi-strategy investment vehicle. Its goal is to provide a balanced, risk-managed entry point into the volatile world of cryptocurrencies while adhering to institutional standards. The initial funding for this venture has been secured from a diverse pool of supporters, including institutional investors, family offices, and sovereign wealth entities.
Faisal Al Hammadi, who serves as managing partner at Further, emphasized that this fund delivers scalable and risk-adjusted access to digital currencies, especially Bitcoin, and has successfully undergone thorough due diligence assessments by prominent global investors.
Investment Opportunities and Unique Features
Pascal St-Jean, president and CEO of 3iQ, expressed confidence in the fund’s design, stating it allows investors to ambitiously aim for substantial returns in the double digits. A standout component of this fund is its Bitcoin View share class. This category enables eligible investors to contribute in Bitcoin and receive returns based on that currency, effectively increasing their Bitcoin holdings over time. The establishment of this share class was bolstered by a sizable in-kind contribution from a family office based in Abu Dhabi, although the specific entity has not been disclosed.
About 3iQ and Further Asset Management
Founded in 2012, 3iQ specializes in offering regulated investment products for institutional and professional investors with an interest in digital assets, ensuring compliance with traditional investment frameworks. The company is actively enhancing its crypto offerings through platforms like its Digital Assets Managed Account Platform.
Further, on the other hand, is known for facilitating access to a variety of regulated investment opportunities in venture capital, structured products, and digital assets. This latest fund launch comes in the wake of a growing trend where more financial players are tapping into the crypto space, as evidenced by Coinbase’s recent announcement to create a Bitcoin Yield Fund aimed at institutional investors outside the U.S. This Coinbase fund is projected to provide an annual return ranging from 4% to 8%, catering to the rising demand for income-focused crypto options among seasoned investors. It has also garnered support from various investors, including the Abu Dhabi-based Aspen Digital, which operates under the oversight of the Financial Services Regulatory Authority.
