Cryptocurrency exchange Bitfinex has onboarded Bahama-based hedge fund, Fulgur Alpha, in order to appeal to institutional investors.
Institutional investment into digital assets has been a hot topic over the past two years with a significant spike in interest on the back of Facebook’s proposed Libra project.
Large deals are typically conducted via over-the-counter (OTC) desks, which take place away from order books to avoid slippage.
Fulgur Alpha’s assets are held at Delchain Limited, a licensed provider of custody, banking and capital.
“It is really rare that a fund of this size chooses to trade almost exclusively in a single location,” said Paolo Ardoino, Chief Technology Officer at Bitfinex. “The onboarding of Fulgur Alpha cements Bitfinex’s position as the go-to venue for major crypto funds, market makers and arbitrageurs.”
Bitfinex has onboarded Fulgur Alpha, a $280m Crypto Hedge Fund!
The onboarding of Fulgur Alpha cements Bitfinex’s place as an exchange offering a robust trading infrastructure that meets the stringent requirements of institutional investors.https://t.co/nXllN37cUl pic.twitter.com/EOS1fqNU2S
— Bitfinex (@bitfinex) March 16, 2020
Bruno Macchialli, Executive Head of Operations at Delchain, added: “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.
Coin Rivet has extensively covered the OTC Bitcoin market over the past year, with data signalling that a lack of retail interest has paved the way to a spike in institutional investment.
This has been spurred by reputable banks like JP Morgan launching its own cryptocurrency while a number of countries are assessing the benefits of a central bank digital currency (CBDC).
To read Coin Rivet’s guide on OTC trading, click here.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.