Nine Blocks Capital Management Secures Cryptocurrency Hedge Fund License in Dubai

The first-ever license for a cryptocurrency hedge fund was given to Nine Blocks Capital Management by Dubai’s Virtual Assets Regulatory Authority (VARA), marking a significant milestone for the company. The hedge fund is putting itself in the middle of the growing cryptocurrency business sector that has made Dubai home by announcing the move of its worldwide headquarters to the city.

Dubai’s Crypto-Friendly Ecosystem

Dubai’s VARA has created a strong framework that covers many aspects of the cryptocurrency scene, which stands in striking contrast to the regulatory complexity in the US. A thriving network of cryptocurrency enterprises has been established in the city thanks to the extensive rules, which covers everything from issuance and exchange services to advertising.

Henri Arslanian, a co-founder of Nine Blocks, highlighted in an interview the distinct ecology established by VARA in Dubai. “VARA has actually established a cryptocurrency ecosystem in Dubai,” said Arslanian. He emphasized that there are a lot of hedge fund counterparties in the same small area, making it simple to communicate and share information within a radius of just one square kilometer.

Using a market-neutral trading approach, Nine Blocks Capital Management sets itself apart by taking advantage of arbitrage possibilities and market inefficiencies in the cryptocurrency field. Arslanian described the fund’s strategy in an interview, saying, “Being market neutral, we don’t take any directional risk.” He highlighted the fund’s capacity to produce alpha by taking advantage of market inefficiencies in cryptocurrencies, namely by making arbitrage between the spot prices of ETH and bitcoin and perpetual swaps.

The calculated relocation to Dubai fits nicely with the city’s goal of becoming into a major international center for the emerging bitcoin sector. Nine Blocks intends to take advantage of the friendly legal framework and the tight-knit cryptocurrency community in Dubai, where it is establishing its global headquarters, to improve business operations and assist the expanding ecosystem.