The interest of traditional finance players is increasing rapidly in the field of crypto. We’ve seen how JPMorgan came out with its JPM Coin a few months ago, and how a number of fund managers from Wall Street jumped the ship to join the crypto bandwagon. Today, one more leading fund manager from London has made a similar announcement.
Nickel Asset Management has launched a new crypto investment fund that will allow experienced investors to capitalize upon the opportunities presented by crypto markets. Most importantly, it’s a regulated fund.
Called the ‘Nickel Arbitrage Fund’, the fund has been approved by the Financial Conduct Authority (FCA) of UK. FCA is the regulator of UK’s financial markets, and its stamp on the fund means that Nickel complies (and will continue to comply in future) with some stringent requirements that ensures the security of investors’ funds.
As a result, the fund has already raised as much as $50 million from various investors.
Explaining the modus-operandi of its fund, Nickel Asset Management said that it will exploit arbitrage opportunities to provide consistent gains to its investors. It will also invest in a variety of digital assets via its automated trading systems to increase the profits, it said. Arbitrage means taking advantage of the price difference between two exchanges.
Nickel’s portfolio manager Alek Kloda said that as long as there are multiple exchanges operating with sufficient speed and quality execution, they can continue to make profits while increasing the liquidity for other market participants.
There’s a serious dearth of regulated cryptocurrency funds in the world. In such a situation, Nickel Asset Management has scored a big deal by getting its crypto arbitrage fund licensed from FCA. That will certainly help them attract some major investors in the short as well as long term. Let’s see!