Further Asset Management and 3iQ launch a $100 million seed capital digital asset hedge fund, betting on bitcoin-linked excess returns

Further Asset Management and 3iQ have jointly launched a market-neutral, multi-strategy digital asset hedge fund—the Further x 3iQ Alpha Digital Fund—with seed capital of up to $100 million. The fund is specifically designed for institutional investors, family offices, and sovereign wealth funds, aiming to offer a regulated risk management framework that enables the pursuit of alpha returns in highly liquid crypto markets.

A major highlight of the fund is the Bitcoin share class, which allows for subscriptions using physical BTC and enables compounding of strategy returns while maintaining full exposure to the underlying asset. This design provides BTC holders with a secure, institutional-grade yield management solution, allowing them to continue holding Bitcoin while seeking excess returns from digital assets. The first batch of BTC share capital comes from a physical investment by a family office in Abu Dhabi.

Pascal St-Jean, President and CEO of 3iQ, pointed out that the fund is intended to address the challenges faced by institutional investors in digital asset allocation by providing a secure, efficient, and institutionally compliant investment channel. The fund is also one of 3iQ’s significant initiatives in building institutional crypto investment infrastructure, with its digital asset managed account platform (QMAP) offering hedge fund-like investment solutions for institutions.

Founded in 2012, 3iQ provides regulated digital asset investment products and platforms for institutions and sophisticated investors. Further Asset Management, headquartered in the UAE, focuses on providing institutional investors with venture capital, structured products, and digital asset investment opportunities, and is committed to building a bridge between financial infrastructure and global capital markets.

The launch of this fund marks a continued rise in institutional interest in Bitcoin-linked strategies, offering high-net-worth and institutional investors a secure, compliant, and yield-optimized channel for digital asset investment. (CoinDesk)