Further 3iQ Launches $100M Fund Focused on Bitcoin Returns

A new hedge fund, the Further x 3iQ Alpha Digital Fund, has been launched through a partnership between UAE-based Further Asset Management and Canadian firm 3iQ. With $100 million in initial capital, this fund is designed for institutional investors looking for structured cryptocurrency exposure, particularly through a Bitcoin-denominated share class that reinvests earnings into Bitcoin.

Key Takeaways

The Further x 3iQ Alpha Digital Fund is a $100 million hedge fund tailored for institutional investors.
It features a Bitcoin-denominated share class that reinvests gains in Bitcoin.
The fund aims to provide risk-managed exposure to the cryptocurrency market.
Further Asset Management and 3iQ focus on regulated products for institutional investors.

New Hedge Fund Launch

Further Asset Management, a digital asset manager based in the United Arab Emirates, has teamed up with Canadian cryptocurrency investment firm 3iQ to introduce a new hedge fund worth $100 million. The fund, aimed primarily at institutional investors, offers structured access to cryptocurrencies, including a Bitcoin-denominated share class that reinvests returns directly into Bitcoin.

As detailed in an announcement made on Wednesday, the Further x 3iQ Alpha Digital Fund is a market-neutral, multi-strategy investment vehicle designed to provide a risk-managed approach to liquidity in cryptocurrency markets under the guidelines of an institutional framework. The fund has received its initial capital from institutional investors, family offices, and sovereign wealth entities.

Faisal Al Hammadi, managing partner at Further, emphasized the importance of the fund's structure, stating, “We’re providing institutional-grade, risk-managed and scalable access to digital assets, including Bitcoin, within a structure that has successfully passed the rigorous institutional due diligence of leading global capital allocators.”

Pascal St-Jean, president and CEO of 3iQ, remarked that the funding structure allows investors to “confidently pursue double-digit potential returns.”

Bitcoin-Denominated Share Class

A standout feature of this fund is its dedicated Bitcoin share class. This part of the fund has been supported by a significant in-kind contribution from an unnamed family office based in Abu Dhabi. The goal here is to give investors a way to steadily boost their Bitcoin holdings while maintaining long-term exposure to the cryptocurrency.

Founded in 2012, 3iQ specializes in regulated products and services specifically designed for institutional investors seeking exposure to digital assets within compliant frameworks. The company aims to expand its offerings in the institutional crypto space through its Digital Assets Managed Account Platform.

Further, as a UAE-based investment platform, provides access to regulated investment opportunities across various sectors, including venture capital, structured products, and digital assets.

Coinbase Introduces Bitcoin Yield Fund

The launch of the Further x 3iQ Alpha Digital Fund aligns with a broader trend among financial players seeking to provide investors with avenues into the cryptocurrency market. In April, Coinbase announced plans for the Coinbase Bitcoin Yield Fund, which is designed to enable institutional investors outside the United States to earn returns on their Bitcoin holdings.

This fund aims for a net annual yield between 4% and 8% and addresses the rising demand for income-generating crypto strategies among professional investors. It has secured backing from several investors, including the Abu Dhabi–based Aspen Digital, which operates under the regulations of the Financial Services Regulatory Authority.