Further, 3iQ launch $100M fund that compounds returns in Bitcoin

United Arab Emirates-based digital asset manager Further Asset Management has partnered with Canadian crypto investment firm 3iQ to launch a $100 million hedge fund targeting institutional investors seeking structured exposure to cryptocurrencies, including a Bitcoin-denominated share class that reinvests gains directly into BTC.

According to a Wednesday announcement, the Further x 3iQ Alpha Digital Fund is a market-neutral, multi-strategy vehicle designed to deliver risk-managed exposure to liquid crypto markets under an institutional framework. The fund was seeded with capital from institutional investors, family offices and sovereign backers.

“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,” Faisal Al Hammadi, managing partner at Further, said.

Pascal St-Jean, president and CEO of 3iQ, said that the fund’s structure enables investors to “confidently pursue double-digit potential returns.”

Related: Goldman Sachs Buys Innovator, Adds Bitcoin-Linked ETF To Lineup

Bitcoin-denominated fund class

One of the fund’s key features is its dedicated Bitcoin (BTC) share class, which allows qualifying investors to subscribe in BTC and receive returns in the same denomination.

The share class was anchored by a large in-kind contribution from an unnamed Abu Dhabi-based family office, giving participants exposure designed to steadily increase Bitcoin holdings while retaining long exposure to the asset.

Founded in 2012, 3iQ focuses on regulated products and services tailored for institutional and professional investors seeking exposure to digital assets within traditional compliance frameworks. The firm has been expanding its institutional crypto offering through infrastructure such as its Digital Assets Managed Account Platform.

Further operates as a UAE-based investment platform providing access to regulated opportunities across venture capital, structured products and digital assets.

Related: BlackRock exec says ‘perfectly normal’ as IBIT sees $2.3B outflows in Nov

Coinbase rolls out Bitcoin yield fund

The new Further x 3iQ Alpha Digital Fund comes as more players offer investors routes into crypto markets. In April, Coinbase announced plans to launch the Coinbase Bitcoin Yield Fund to give institutional investors outside the United States a way to earn returns on Bitcoin holdings.