Report by PwC and Elwood confirms Gibraltar as a jurisdiction of choice for hedge funds, backed up by leading fintech lawyers from ISOLAS LLP
The fourth annual research report into the global Crypto Hedge Fund space, commissioned by PwC and Elwood Asset Management, has seen Gibraltar maintain its place as the third preferred jurisdiction for the domiciliation of hedge funds, behind the Cayman Islands and the British Virgin Islands, and ahead of the United States.
Although the Cayman Islands maintained their top position, the British Virgin Islands overtook the United States as the second most popular location for crypto hedge funds to domicile.
The data confirms that funds tend to be domiciled in the same jurisdictions as traditional hedge funds, supported by one of Gibraltar’s leading crypto and funds law firms, ISOLAS LLP. The firm continues to work with leading and disruptive crypto funds, managers and exchanges who choose Gibraltar for its advanced regulatory approach, particularly on crypto and distributed ledger technology, in addition to its work with traditional hedge funds.
Jonathan Garcia, Partner at ISOLAS LLP, said: “It is encouraging to see these results show Gibraltar continuing to prosper in the crypto funds market. The Gibraltar Government constantly proves to be forward-thinking on blockchain and crypto, ahead of other jurisdictions. This, tied with the industry expertise, has made Gibraltar an extremely attractive domicile for international crypto and fintech businesses. We believe the sector will continue to thrive in the years to come and we are confident Gibraltar will keep privileged position as a top jurisdiction for hedge funds domiciliation.”
The report shows that the total Assets under Management (AuM) of crypto hedge funds globally increased to over US$4.1 billion in 2021 from just over US$3.8 billion in the previous year, an 8% increase despite the impact of the pandemic.
Luke Walsh, a director and crypto-lead at PwC Gibraltar said: “Gibraltar continuing to hold a global leading position in the domiciliation of hedge funds is testament to the robustness of the jurisdiction’s regulatory framework and of its financial and technological innovation, giving crypto businesses the security they need as the industry continues to evolve.”
The report, compiled from data gathered in the first quarter of this year, provides an overview of the global crypto hedge fund landscape and examines both quantitative indicators, such as liquidity, and qualitative aspects, such as custody and governance best practice.