London-based regulated digital assets hedge fund manager Nickel Digital Asset Management (Nickel) has implemented a soft close on its systematic Diversified Alpha Fund following a 150% surge in assets under management (AUM) over the past year.

The move is aimed at managing capacity after the fund posted a 34.9% net return in 2024.

The Diversified Alpha Fund employs a non-directional, multi-strategy approach, integrating a portfolio of capacity-constrained digital asset strategies into a single, investable fund. Despite bitcoin declining 3% in December and ether dropping 10%, the fund delivered a 3.8% gain, reinforcing its uncorrelated nature. It achieved positive returns in 11 out of 12 months in 2024 according to the sources.

Nickel’s Investment Committee has paused new and additional investor subscriptions, honouring all previous capacity commitments. The fund may reopen once it demonstrates sustained 15%-plus annualised returns with interested investors currently being placed on a waitlist.

According to a press statement: "Investors on the waitlist will be prioritised based on submission order, with the potential for a limited reopening should demand exceed available capacity".