₿
Explore the Crypto Hub
Compare crypto exchanges, wallets & hardware — find the best rates.
Setting up a crypto hedge fund in the UK requires FCA authorisation, significant capital, and ongoing compliance. This guide covers the fund structures, costs, and regulatory requirements.
Fund Structure
The most common structure is a Limited Partnership (LP) — the General Partner (GP) manages the fund, Limited Partners (LPs) invest capital.
FCA Requirements
- FCA authorisation required if managing >£5M or >10 investors
- AIFM directive compliance — Alternative Investment Fund Managers regulations
- Regular reporting — Ongoing FCA reporting obligations
Costs
| Category | Cost |
|---|---|
| Setup (legal, regulatory, admin) | £50k–150k |
| Ongoing annual (compliance, audit) | £100k–300k/year |
| Minimum viable AUM | £5M to break even |
Fee Structure
Management Fee
2% of AUM annually — covers operating costs
Performance Fee
20% of profits — aligns GP incentives with investors
Important: Operating without FCA authorisation is a criminal offence. Seek specialist legal advice before launching any fund.
START TODAY
Compare Crypto Platforms
Institutional trading platforms for fund operations
View Platforms →Sento earns a referral if you click — never affects our recommendations.
₿
Want more? Visit the Crypto Hub
Compare crypto exchanges, wallets & hardware — find the best rates.
Sento earns a referral if you click through our links — this never affects our recommendations. Prices and details correct at time of publication. Updated February 2026.