U.K. based hedge fund manager Nickel Asset Management has raised $50 million towards its crypto investment fund in a bid to attract institutional investors.
As reported by Finance Magnates on Sept. 9 the London based firm ‘has officially launched an actively managed crypto investment fund that is geared towards experienced investors who are looking to capitalize from volatility in the cryptocurrency markets.’
The finance firm manages assets for institutional investors using computationally intensive, low-latency arbitrage strategies. The company describes their services as targeting consistent absolute returns within a strictly defined risk framework.
The $50 million fund will be used to invest in several digital assets across multiple platforms allowing for investors to take advantage of arbitrage opportunities inherent with cryptocurrency trading.
The firm will use its own automated trading systems to maintain profitability in the execution of arbitrage trading. Alex Kloda, Nickel’s Portfolio Manager commented on the developments in adding: ‘As long as digital assets and their derivatives trade on multiple exchanges across the globe, with sufficient speed and execution quality, we can profitably make markets, while improving liquidity for other market participants.’
The company has relieved many of the fears generally associated with cryptocurrencies such as fraud and black-market activities by gaining official approval by the U.K.’s Financial Conduct Authority (FCA).
The firm believes that their progress will help negate the reputational problems associated with the crypto industry at present. Anatoly Crachilove, Nickel Asset Management’s CEO stated that it ‘is that it’s simply a matter of time until digital assets become part of institutional portfolio allocation for forward-looking investors around the world, and we aim to build an institutional-quality gateway to this high-octane world of digital assets.’