Prime Factor Capital has exited the cryptocurrency investments game less than a year after becoming the first regulated British crypto hedge fund to gain approval.

  • The alternative assets manager failed to attract many institutional investors during its two-year run (it was founded in 2018), according to a report by Financial News, and is shutting down completely.
  • Founded by BlackRock alumni, the firm became Britain's first approved crypto hedge fund in July 2019 when it secured a Financial Conduct Authority (FCA) license to manage in excess of 100 million euros. 
  • That wasn’t enough to lure big-fish investors, however, and neither was the firm’s claim to deliver existing clients a 4% average monthly return, CEO Nic Niedermowwe told Financial News.
  • FCA records show that Prime Factor Capital’s authorization expired on June 25.

Read more: UK Regulators Approve First Cryptocurrency Hedge Fund

Disclosure
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.