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Hilbert Capital, the asset management arm of Swedish investment firm Hilbert Group (HILB), will manage a bitcoin (BTC) -denominated hedge fund with an initial capital of $200 million. Crypto bank Xapo will contribute to the initial capital.

The fund, set to launch in September, will be available to corporates, businesses and professional investors, according to an announcement on Tuesday .

"We believe that offering the right products for participants in the space who are aiming not only for exposure to the Bitcoin price, but also structured ways to grow the Bitcoin value of those investments is a natural evolution of the asset class," Xapo Director Joey Garcia said.

The firms have not said specifically what the fund's fees will be, though did say they will be "at a lower level than other 2% and 20% hedge funds". This refers to a fee structure where the manager charges 2% as a management fee and 20% as a performance fee on the fund's upside.

The growth of bitcoin hedge funds could be seen as a barometer for increasing institutional adoption of crypto, as the investment class signals demand for sophisticated products beyond what can be offered to retail investors.

Read More: The Case for Crypto Index Funds

CORRECTION (Aug. 30, 07:35 UTC): Corrects headline and lede graf to clarify that Hilbert Capital is managing the fund.