Fidelity Crypto Arm Offers Custody to Nickel’s Second Bitcoin Fund

London-based hedge fund manager Nickel Asset Management has officially launched its second cryptocurrency offering, Nickel Digital Gold Institutional fund, which brings multi-year experience from traditional finance to leverage opportunities in virtual assets.

Fidelity Digital Assets, the cryptocurrency arm of Boston-based Fidelity Investments, is offering custody services for the new fund, with Nickel becoming Fidelity’s first European partner in the digital assets space.

The new fund is also supported by a bespoke Walled Garden solution developed by digital assets prime brokerage Copper.

Nickel Digital Gold Institutional Fund aims to resolve the existing complexities in Bitcoin index-tracking crypto products. It claims to offer competitive terms, including management fees of 0.5 percent, daily Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term, and subscriptions and redemption at NAV, with no premia or discounts to fair market value.

Nickel also uses proprietary execution algorithms to minimize trading slippage, and it already has built its own automated trading systems.

“We believe it is only a matter of time until digital assets become part of regular portfolio allocation for forward-looking institutional investors,” said Anatoly Crachilov, CEO of Nickel in London. “Whilst lack of transparent and cost-efficient access held back allocators’ diversification efforts into this asset class amongst institutional investors so far, we are on a mission to challenge the status quo. We have built an institutional-quality gateway to this new asset class,” he added.

Digital assets become part of institutional portfolio

The UK asset manager has previously launched an actively managed crypto investment fund that is geared towards experienced investors who are looking to capitalize on Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term in the cryptocurrency markets.

Dubbed ‘Nickel Arbitrage Fund,’ the vehicle has raised $50 million from funds and family offices in the UK, Europe, North America, and Singapore.

Fidelity Digital Asset Services (FDAS) has established a new entity to serve European institutions investing in digital assets. Fidelity’s cryptocurrency unit only serves institutional investors such as hedge funds, family offices, and market intermediaries.

The new company already features institutional-grade, crypto linked services, including custody offerings to safeguard holdings and execution services 24 hours a day, seven days a week.

On a related note, Fidelity has named former managing director at Barclays Chris Tyrer to lead the European business. Tyrer was tasked with developing the investment bank’s digital assets project and was previously its head of commodities trading.