UK Watchdog Approves First Cryptocurrency Hedge Fund

July 7, 2019 James Heinsman Hedge Fund News


The Financial Conduct Authority approved, a United Kingdom regulatory agency, approved Prime Factor Capital as a full-scope alternative investment fund manager in the crypto hedge fund space.


The firm will follow European regulations even though it was approved by the UK agency. Therefore they will be allowed to maintain over 100 million Euros AUM. Prime Factor is the first company to get approval to invest only in cryptocurrencies.


The founders who established the firm believe that concentrating on one type of asset, even one as suspect as cryptocurrency, will succeed as a trusted authority on crypto investments.


“Most vehicles for investing in cryptocurrencies are outside the scope of regulators and that’s a big problem in a market that has such a bad reputation,” said Adam Grimsley, Prime Factor’s chief operating officer.


EU regulations require that Prime Factor appoints a custodian who will be responsible to assure and certify investor’s returns as well as the holdings of the fund. The custodian must be completely independent of the firm and provides cash flow reconciliation as part of his/her responsibilities.

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