A London-based hedge fund is planning a $20 million fundraise to pivot its investment strategy towards artificial intelligence and cryptocurrency, according to a person familiar with the matter.
Fundraise Details
The firm, which manages around $50 million in assets, aims to close the fundraising round by the end of the second quarter. The capital will be used to develop proprietary AI trading algorithms and expand its crypto portfolio, which currently accounts for 10% of assets under management.
Strategic Shift
“We see a convergence between AI and blockchain technologies that presents unique opportunities,” the source said. The hedge fund plans to hire data scientists and blockchain engineers to support the initiative. This move comes as institutional interest in digital assets rebounds, with Bitcoin up 50% year-to-date.
Market Context
The fundraising reflects a broader trend among traditional financial firms embracing crypto and AI. Competitors have also launched similar strategies, but the hedge fund believes its hybrid approach will differentiate it.
