The U.K.'s first licensed crypto hedge fund is shutting down

Prime Factor Capital, the first cryptocurrency hedge fund in the U.K. to win approval from the country's government, is closing its doors.

Financial News reported on Wednesday that the firm — founded by former BlackRock execs and granted approval from the U.K. Financial Conduct Authority last summer — is shuttering "due to insufficient demand from institutional investors," according its CEO, Nic Niedermowwe.

"We can confirm that the fund, despite having delivered an average monthly performance in excess of 4%, is being wound down due to insufficient demand from institutional investors,” Niedermowwe told the publication.

Financial News added that, citing sources, the company "had struggled to get traction in terms of raising assets and that it tried, in the past six to 12 months, to sell a stake in the management company."