UK-based financial regulator, The Financial Conduct Authority (FCA), approved Prime Factor Capital as the first crypto hedge fund to operate as a full-scope alternative investment fund manager. It is the first firm to get regulatory approval to exclusively invest in the cryptocurrency asset class.
Prime Factor Capital’s Chief Operating Officer, Adam Grimsley, told Bloomberg, “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.” Under EU regulations, Prime Factor is obligated to select a custodian to validate the hedge funds’ holdings and its investors’ returns. The appointed custodian will be completely separate and independent of the firm.
Prime Factor manages money for accredited and institutional investors including private wealth managers, family offices, and high-net-worth individuals. The team brings a wealth of experience from Wallstreet, including former Goldman Sachs and BlackRock employees.
Prime Factor Capital previously announced an equity financing with European FinTech investor, Speedinvest, and a talent investor, Entrepreneur First. According to Coindesk, Prime Factor’s founders believe they will surpass their global competitors by focusing exclusively on a single asset class and become the trusted authority in crypto investments.