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‘It’s still too early for proper institutions to invest’ but we’re ready, says UK’s first regulated crypto hedge fund

by Isabel Woodford

July 3, 2019, 9:40AM EDT  ·  2 min read

Quick Take

  • Prime Factor Capital has become the first asset manager that invests exclusively in crypto to get approval from the UK regulator, the FCA
  • CEO Nic Niedermowwe told The Block that being regulated will give wary investors an “extra level of assurance,” but that “proper institutions” will need more time
  • The firm chose to base itself in London as a city with renown regulatory rigour and deep pockets

by Isabel Woodford

July 3, 2019, 9:40AM EDT  ·  2 min read

It’s a big week for the UK. Not just because Wimbledon has started, but because the country’s financial regulator has granted its first license to a crypto asset manager.

London-based Prime Factor Capital can now operate as a full-scope Alternative Investment Fund Manager (AIFM) under EU rules. The firm, run by a former BlackRock duo and an energy derivatives trader, was founded in 2017 and launched this January; managing professional and institutional investors’ crypto assets.