Pan Finance Spotlight Series: Nickel Digital Asset Management

Nickel Digital Asset Management offers institutional investors secure, efficient, and transparent access to growth opportunities in the digital asset market, aiming to improve the diversification of institutional portfolios through uncorrelated returns. Founded by veterans of fixed income arbitrage and investment management from major Wall Street banks and multi-billion hedge funds, Nickel combines extensive experience with academic expertise in mathematics, econometrics, and engineering from prestigious institutions like Wharton, LSE, and the University of Oxford. The firm manages assets for institutional investors using market-neutral arbitrage strategies, exploiting volatility swings, market inefficiencies, and price dislocations, targeting consistent absolute returns within a well-defined risk framework. By diversifying portfolios, Nickel believes this new asset class can significantly enhance the efficient frontier of underlying portfolios.

Authorised and regulated by the FCA in the UK and a member firm of the NFA in the US, Nickel's senior management team brings decades of experience from prominent financial institutions and leading hedge funds. The firm employs low-latency algorithmic trading systems, utilizing arbitrage strategies in both spot and derivative markets to capitalize on volatility and price dislocations. Nickel’s proprietary 24/7/365 trading and risk management systems are designed to deliver consistent returns.

Nickel’s flagship fund, the Digital Asset Arbitrage Fund, employs market-neutral strategies in the crypto space, achieving consistent returns since its inception (+31.3% cumulatively), with a Sharpe ratio of 3.1 and volatility of 3.5%. The firm manages four funds with distinct risk/return profiles, and as of March 1, 2022, it has approximately $300 million in assets under management (AUM).

Nickel Digital is a regulated investment manager at the forefront of merging traditional finance with the fast-paced digital asset market. The firm leverages proprietary execution and risk management systems to create and implement advanced quantitative trading strategies, offering a diverse portfolio of funds for institutional clients. By adapting arbitrage and fundamental analysis techniques from traditional financial markets, Nickel generates non-directional or venture-style returns while maintaining a monthly liquidity profile. Committed to transparency and execution efficiency, Nickel upholds industry-leading standards and regulatory approvals in the UK and US.

The management team includes:

Anatoly Crachilov , CEO & Founding Partner;

Michael Hall, CIO & Founding Partner;

Aleksander Kloda PM & Founding Partner;

Jordi Perez , Chief Trading Officer; and

Jonathan Patterson , COO.