The Bitfinex exchange will host the $280 million Fulgur Alpha crypto hedge fund on its platform to provide increased liquidity for institutional investors.
Indeed, Fulgur Alpha is only accessible to professional investors.
The launch of Fulgur Alpha on Bitfinex will increase the liquidity of the exchange, especially for bitcoin (BTC), making it one of the top 3 platforms in the world in terms of volume.
Moreover, during the price volatility of the last few days, both BitMEX and Gemini – the other two most important institutional platforms – went offline, whereas Bitfinex processed over 1 billion trading volumes in 24h.
Paolo Ardoino, Chief Technical Officer (CTO) of Bitfinex and Tether, said:
“It is really rare that a fund of this size chooses to trade almost exclusively in a single location. The onboarding of Fulgur Alpha cements Bitfinex’s position as the go-to venue for major crypto funds, market makers and arbitrageurs.”
“We’re bringing a traditional fund set up to the crypto space, with a diversification of risk, making this a unique proposition that has not been seen before. This represents a blueprint for institutional investment in crypto, leveraging the required liquidity and custody solutions,” said Bruno Macchialli, Executive Head of Operations at Delchain, which owns the assets of Fulgur Alpha as a custody service provider.
The latest news at Bitfinex
In addition to trading volume records, Bitfinex has recently made a name for itself by releasing Tether Gold, a new stablecoin pegged 1 to 1 with the price of an ounce of gold, of which margin trading has also recently been launched.
Furthermore, the exchange is seeing its Lightning Network node grow. LN is the second layer of Bitcoin designed to increase the scalability of the blockchain, which currently has a capacity of more than 28 BTC, or $135,000 at this time.