Canada’s 3iQ and Abu Dhabi’s AltNovel Collaborate To Address Institutional Market demand For Digital Assets In The Middle East

On May 7, 2025, AltNovel, an alternative investment firm located in Abu Dhabi, and 3iQ Corp, a Canadian investment fund management company, declared their collaboration to establish the AltNovel Digital Access Portfolio (ADAP), designed to offer institutional and accredited investors a structured and diversified method of accessing various blockchain-based assets while ensuring regulatory adherence.

The demand for digital assets among institutional investors in the Middle East is on the rise, with family offices, high-net-worth individuals (HNWI), and sovereign wealth funds showing an increased interest in gaining entry into this asset class. As a pioneering multi-strategy fund targeting digital assets, ADAP has been introduced as the region’s response to this burgeoning institutional investment interest.

Additionally, the fund seeks to attract newer investors in the region eager to explore digital asset investments. It has been launched from Abu Dhabi’s international financial center, ADGM, and will function within its regulatory framework.

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“This collaboration marks a significant achievement for AltNovel as we continue our mission to deliver high-quality investment solutions to private investors in the GCC from our base in the ADGM,” remarked Stergios Voskopoulos, CEO of AltNovel.

He further mentioned, “Digital assets symbolize the next horizon for portfolio diversification, and our strategic alliance with a leading entity like 3iQ is in line with our dedication to providing tailored institutional-grade digital asset investment avenues that adapt to their ever-changing requirements.”

We are thrilled to announce our partnership with AltNovel to introduce the AltNovel Digital Access Portfolio (ADAP), the Middle East’s first Multi-Strategy Fund focused on digital assets.

Check out the latest press release to learn more: https://t.co/Mj0vgFISeA pic.twitter.com/o4Ws7nlOTG

— 3iQ Digital Asset Management (@3iq_corp) May 7, 2025

The ADAP fund seeks to empower investors with a multifaceted strategy, investing across various asset classes, including cryptocurrencies, DeFi (DeFi), stablecoins, and other distributed ledger technologies.

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Addressing Trader Demands and Concerns

The Middle East is increasingly demonstrating its maturation and interest in digital assets. According to the latest report from Chainalysis, major institutional (over $10 million), institutional ($1 million to $10 million), and professional ($10,000 to $1 million) size crypto transfers in the UAE showcased annual growth rates of 20.13%, 55.07%, and 46.3%, respectively.

Despite this considerable growth, numerous institutional investors are still apprehensive about protection and trading market market fluctuation.

The objective of ADAP is to mitigate these concerns by implementing a diversification strategy, prioritizing risk management. Being a multi-strategy fund, it is capable of responding to market fluctuations by incorporating directional strategies, income-based strategies, and stable crypto assets that provide a cushion against trading market instability.

The fund aspires to offer reduced price swings and drawdowns in comparison to long-only cryptocurrency investments while aiming for returns exceeding 20% per year and drawdowns limited to a minimum of 2.4%. Essentially, the ADAP fund connects global investment avenues with private wealth using distributed ledger technology.

Fred Pye, Chairman and CEO of 3iQ Corp, stated that this launch marks a significant milestone for the region’s digital assets sector. “We are eager to leverage our extensive experience in digital asset management within the Middle Eastern crypto market alongside AltNovel. We are providing investors with a regulated, secure, and diversified means to invest in this asset class,” Pye commented.

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The article Canada’s 3iQ And Abu Dhabi’s AltNovel Collaborate To Address Institutional Demand For Digital Assets In The Middle East was originally published on 99Bitcoins.