Prime Factor Capital, the UK’s first compliant cryptocurrency hedge fund, is about to close

According to Financial News, people familiar with the matter revealed that Prime Factor Capital, the UK’s first compliant cryptocurrency hedge fund, is currently in the process of splitting its business. Nic Niedermowwe, CEO of Prime Factor, said that although the fund’s monthly average performance exceeds 4%, the fund is being scaled down due to insufficient demand from institutional investors. People familiar with the matter said the fund has been working hard to raise funds and has tried to sell shares in the company in the past 6 to 12 months. According to another person familiar with the matter, in May this year, the company began negotiations on the sale of its fund management license to another cryptocurrency company. Online records show that as of June 25, the company is no longer under the supervision of the UK Financial Conduct Authority. Prime Factor confirmed that the company has cancelled the license. According to previous reports from Chain Wen, the UK Financial Conduct Authority approved Prime Factor Capital last year as the country’s first compliant crypto hedge fund. The fund will comply with EU regulatory policies and manage more than 100 million euros in assets. The Prime Factor Capital team comes from Blackrock, Legal & General, Goldman Sachs and Deutsche Bank, and has previously conducted equity financing. Shareholders include investment institutions Speedinvest and Entrepreneur First.