Hilbert Group and Xapo Bank Launch Bitcoin Yield Hedge Fund with $175 Million Initial Investment

Bitcoin Yield Hedge Fund Sees $175M Initial Investment

Hilbert Group and Xapo Bank have successfully completed the launch of their Bitcoin Yield Hedge Fund, securing an impressive $175 million in initial investments. The BTC-denominated credit fund, under the management of Hilbert Capital, represents a significant step in offering institutional-grade yield opportunities to investors with Bitcoin balance sheets. Initial commitments to the fund, totaling 3,000 BTC (approximately $175 million), are already in place, with a broader global launch planned for January 1, 2025, pending regulatory approval.

The fund, known as the Xapo Byzantine BTC Credit Fund, is designed to serve Xapo Bank's global clients, offering an option for high-quality BTC treasury management. Hilbert Group CEO Niclas Sandström expressed confidence in the project, stating that demand for Bitcoin yield products is high, and the previously communicated target of $200 million by the end of 2024 could be significantly exceeded. Sandström highlighted that Hilbert and Xapo Bank have been collaborating on this initiative for nearly two years, with a series of investments culminating in the launch of this credit fund.

Joey Garcia, Director of Xapo Bank and the Xapo Byzantine BTC Credit Fund, also underscored the market's appetite for such products. He noted the importance of secure BTC treasury management options, which are currently scarce in the space, and emphasized that the fund’s early success demonstrates strong market interest. The fund aims to provide a reliable yield on Bitcoin holdings, catering to a growing demand among institutional and large-scale investors looking for trustworthy investment solutions.

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