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Cigrek Capital Launches EU Platform For Digital Asset Hedge Fund Strategies

Cigrek Capital has launched its fully-regulated, EU-based solution for managers of digital assets strategies seeking distribution to institutional investors. Cigrek’s solution has been designed specifically for managers of established digital funds who are seeking alternative distribution venues.

The new umbrella is based on a fully regulated AIF limited partnership structure and has 10 cells immediately available for use by fund managers. The structure has not previously been available for digital assets managers.

Fund managers will become advisers to the cells, which sit under the fully regulated umbrella. The service also includes an EU depositary. It addresses the need institutional investors have for a more regulated solution which ticks many of the boxes they require.

Cigrek will also assist with distribution including initial seed commitments for the individual strategies under the umbrella. New managers will need to demonstrate their investment credentials including a certified track record for the strategy they are pursuing.

“There is a huge gap in the market for crypto funds that are not just ETFs but actually own and trade crypto and digital assets, however, regulation and jurisdiction, and investor protection have always been a massive issue, especially for regulated wealth managers and Discretionary Fund Managers," said Laura Barcevska, Managing Director at Cigrek Capital.

Cigrek Capital is already in discussions with several established digital asset fund managers with a view to launching its first strategies under the new umbrella in the autumn. Many of these already have existing Cayman Islands fund structures, but have found that this may not always be suitable for an asset raise.

“Digital assets are still a very new asset class, and there is an understandable level of caution among institutional investors when it comes to accessing these,” added Barcevska. “But the appetite is there – investors would like to allocate more to leading managers in this space, but they want to see a more regulated solution at the same time.”

Cigrek expects the first strategies under the new umbrella will launch to investors in Q4 of this year.

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