Nine Blocks Crypto Hedge Fund Obtains Digital Assets License in Dubai

• Nine Blocks Capital Management Secures Cryptocurrency Hedge Fund License in Dubai
• Dubai: A Flourishing Hub for Cryptocurrency Businesses
• The Role of VARA in Dubai's Cryptocurrency Ecosystem
• Nine Blocks' Market Neutral Trading Strategy

Nine Blocks Capital Management Secures Cryptocurrency Hedge Fund License in Dubai

Nine Blocks Capital Management has earned the distinction of being the premier cryptocurrency hedge fund licensed under the Virtual Assets Regulatory Authority (VARA) in Dubai. The hedge fund also declared on Monday that its global headquarters would be based in Dubai.

Dubai: A Flourishing Hub for Cryptocurrency Businesses

Far removed from the ambiguity and complexity of U.S. regulation, a thriving hub of cryptocurrency enterprises has established itself in Dubai. This has been fostered by a comprehensive regulatory framework addressing various aspects ranging from issuance and exchange services to advertising.

The Role of VARA in Dubai's Cryptocurrency Ecosystem

VARA has played a pivotal role in fostering the cryptocurrency ecosystem in Dubai, according to Nine Blocks co-founder Henri Arslanian. He highlighted how close proximity to the hedge fund's counterparties, all located within one square kilometer, facilitates easy interaction and information exchange.

Nine Blocks' Market Neutral Trading Strategy

Nine Blocks employs a market neutral trading strategy, generating profits from arbitrage opportunities and market inefficiencies within the cryptocurrency sector. As a market neutral entity, Nine Blocks does not engage in directional risk. The course of Bitcoin$42,260 -0.64%, whether it's rising or falling, does not significantly impact the fund. Instead, they generate alpha from discrepancies in the crypto market. Examples of such strategies include arbitrage between perpetual swaps and the spot price of Bitcoin and Ethereum$2,315 -2.42%.

Edited by Jonathan Stoker