Prime Factor Capital: First crypto hedge fund

By We Play Coins
Added on Jul 03, 2019
Prime Factor Capital: First crypto hedge fund

The first crypto hedge fund has been approved as a full-scope alternative investment fund manager by the FCA, UK, according to a Bloomberg report.

Prime Factor Capital is a FCA-regulated investment manager that specialises in cryptocurrencies. Our focus on just one asset class makes us a leader in the space and a trusted authority on crypto investing.

The Financial Conduct Authority or FCA is the UK watchdog for all financial services provided in the country. While approval has been given to the investment fund Prime Factor Capital, they will continue to abide by the European regulations. The EU guidelines provide for the firm to hold more than 100 million euros in assets. This will be the first agency to be given approval which deals solely in cryptocurrencies as assets.

The approval comes in the backdrop of major talks of more regulations on the cryptocurrencies in the market. Facebook’s Libra is under scrutiny from multiple governments and agencies. Notably, the G7 countries headed by France has appointed a task force to investigate the impact of cryptocurrencies on fiat economies, especially the local and small traders. The US senate has also conducted investigations into the possible use of cryptocurrencies to perpetrate tax evasion and other crimes. India has recently banned all cryptocurrencies pending further investigation. In spite of the trend, UK has been making positive statements regarding cryptocurrencies. This recent approval is largely seen as an outcome of the position the central bank of England has taken with regard to cryptocurrencies.

Prime Factor Capital was founded by Nic Niedermowwe, CEO, Michael Wong, Chief Investment Officer and Adam Grimsley, CFA, Head of Investment Solutions. The firm is confident that cryptocurrencies as a single asset will give returns as they provide a platform for the creation of industry experts.

As mentioned in their About Us –

Founded in 2017, Prime Factor Capital is an asset manager that specialises in cryptocurrencies. Our focus on just one asset class has allowed us to become a leader in this space and a trusted authority on crypto investing.


Based in London, the team combines experience in institutional portfolio management with expertise in blockchain technology and crypto trading. The management team comes from firms such as Blackrock, Legal & General, Deutsche Bank and Goldman Sachs.


Prime Factor Capital is a full-scope Alternative Investment Fund Manager as defined by the EU’s AIFM Directive. The firm is regulated by the UK’s financial markets regulator, the Financial Conduct Authority.

The problem with investing in cryptocurrencies, according to the COO of Prime Factor Capital Adam Grimsley, is limited due to the bad reputation and the regulation issues with many countries. Prime Factor Capitals’ main aim is to fix that gap.

In accordance with EU regulations, the firm will appoint a custodian to validate investors’ returns and the fund’s holdings.

The firm is the first of its kind, single asset hedge fund that claims to make investing in crypto mainstream by providing a base of legitimacy and transparency. It is also fully compliant with the FCA, UK, making it an extremely lucrative opportunity for late investors in crypto.