Crypto hedge fund managers JellyC and Trovio Asset Management have merged in a strategic move aimed at attracting allocations from institutional investors, including pension funds, according to a report by Bloomberg.

The report cites company executives as confirming that the merger is aimed at scaling operations to appeal to larger investors, particularly in the Asia-Pacific region, with Australia-based JellyC, holding the majority share in the combined entity.

Co-Founder Michael Prendiville emphasised the importance of reaching scale to secure allocations from big investors, including Australia’s superannuation funds. “If we’re not at capacity, we won’t get the allocation,” he said.

Australia’s AUD3.9tn ($2.6tn) pension industry has so far been cautious about investing in digital assets, but Prendiville believes this will shift as the country strengthens its crypto regulations.

The merged business aims to grow its combined assets under management by 150%, targeting AUD250m by mid-2026. According to Trovio CEO, Jon Deane, the firm will eventually exit its shareholding in the merged firm, although no specific timeline has been set.