First crypto fund-only administrator launches in the US

Crypto fund-only fund administrator launches with $700 million in cryptocurrency assets under administration from around the world.

Quantreq Capital Markets has launched the first crypto fund-only administrator with $700 million in cryptocurrency assets under administration from around the world.

The firm was founded by traditional fund administrator North Street Global.

Quantreg says its aim is to bring an institutional approach to the non-traditional market, targeting clients in the US, and also Asia and Europe.

“We have seen just as much crypto fund formation and investing activity outside the US as we have seen in the US,” Alex Mascioli, CEO, North Street Global.

“We anticipate the greatest initial take-up for new launches will be from those jurisdictions whose regulations are currently either the most lenient or organised.”

The offering will include full-service cryptocurrency hedge fund administration, market data services and AML/KYC compliance, which are being required by institutional investors in the space.

Despite growing interest in cryptocurrencies, there has been a lack of service providers and market infrastructure, along with lingering AML/KYC and regulatory concerns.

Many experts believe hedge funds will be the first of the buy-side to venture into the space, leading administrators to roll out new services.

Quantreq’s initial clients include Sora Ventures, high frequency algorithmic crypto trading firm Hyperion Decimus and ARCA Funds.

Earlier this week, crypto asset technology provider Libra said it had seen uptake from 15 fund administrators for its middle- and back-office services, suggesting many more traditional players are entering the space.

Trident Trust and Theorem Fund Services have gone live on the Libra Crypto Office platform, with Apex Fund Services, North Street Global, and Stonegate Global Fund Services on-boarding their initial hedge fund clients.

Libra has said a further 10 fund administrators are currently in the contracting process.