Abu Dhabi’s AltNovel and 3iQ: Region’s First Multi-Strategy Crypto Fund

Marking a major breakthrough in the region’s digital finance evolution, Canadian digital asset manager 3iQ has partnered with AltNovel, an Abu Dhabi-based alternative investment platform, to launch the Middle East’s first institutional-grade multi-strategy digital assets fund. The new vehicle, named the AltNovel Digital Access Portfolio (ADAP), aims to offer qualified investors diversified exposure to a curated selection of alpha-driven digital asset hedge funds.

The fund is designed to cater to a rapidly evolving class of investors across the Gulf Cooperation Council (GCC) and broader Middle East region, at a time when traditional finance is increasingly converging with digital assets under the umbrella of regulatory clarity, institutional adoption, and innovation.

AltNovel is a licensed asset manager based in Abu Dhabi, focused on providing differentiated alternative investment solutions across hedge funds, digital assets, and private markets. The firm is regulated by the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM).

Founded in 2012, 3iQ Corp. is Canada’s largest digital asset investment fund manager. The firm offers a suite of regulated products including The Bitcoin Fund (TSX: QBTC), The Ether Fund (TSX: QETH), and the 3iQ Global Cryptoasset Fund. 3iQ is recognized globally for its regulatory innovation and commitment to expanding access to digital asset markets.

The partnership between 3iQ and AltNovel signals a strategic commitment to fostering institutional access to digital assets through structured, risk-managed products. AltNovel, licensed and regulated by FSRA, will act as the fund manager, while 3iQ will provide investment management support and digital asset expertise.

“This partnership is a milestone for AltNovel as we continue to focus on bringing high quality investment solutions to private investors in the GCC from our home in the ADGM,” said Stergios Voskopoulos, CEO of AltNovel. “Digital assets represent the next frontier in portfolio diversification, and this collaboration with a sector leader like 3iQ aligns with our commitment to offering forward institutional-grade, highly customizable digital asset investment opportunities tailored to their evolving needs.”

3iQ President and CEO Pascal St-Jean echoed this sentiment, highlighting the United Arab Emirates’ favorable stance toward innovation. “The United Arab Emirates is at the forefront of financial innovation and robust digital assets regulation. As part of our global expansion plan, we are excited to partner with AltNovel to bring our expertise in risk management and digital asset strategies to the region. We are seeing an increasing demand for institutional risk-managed solutions.”

ADAP is tailored specifically for institutional and high-net-worth investors seeking a comprehensive digital asset strategy. Unlike single-asset products, ADAP will invest across multiple alpha-focused digital asset hedge funds, each with distinctive strategies designed to generate consistent returns across market cycles.

The fund’s multi-strategy mandate will include market-neutral crypto arbitrage to exploit pricing inefficiencies, quantitative trading strategies driven by data and algorithms, and high-frequency models that capitalize on short-term market movements. Additionally, the fund will explore DeFi yield opportunities within a tightly controlled risk framework and maintain selective long-biased exposure to high-conviction digital assets to capture upside potential.

According to preliminary materials, ADAP targets annualized net returns of over 20% with maximum drawdowns capped at around 2.4%, emphasizing capital preservation and minimal correlation with traditional markets.

This aligns with a broader industry shift toward structured, risk-adjusted digital asset investment vehicles that can stand alongside traditional asset classes like equities and fixed income within institutional portfolios.

The launch of ADAP also marks another milestone in 3iQ’s ongoing expansion into the Middle East. In 2021, the firm made headlines by listing The Bitcoin Fund (QBTC) on Nasdaq Dubai, becoming the first regulated digital asset fund to trade on a Middle Eastern exchange. That listing opened a gateway for regional investors to access Bitcoin through familiar, exchange-regulated instruments.

With ADAP, 3iQ is signaling a deeper commitment to the region, moving beyond single-asset funds toward sophisticated, actively managed multi-strategy offerings designed to meet the evolving needs of private banks, sovereign wealth funds, and institutional asset managers.

The Middle East, particularly the UAE, has emerged as a hotspot for digital asset innovation underpinned by clear regulations and government support. ADGM, the jurisdiction where AltNovel is licensed, has developed one of the world’s most comprehensive virtual asset regulatory frameworks, attracting firms like Coinbase, Kraken and Circle.

As traditional institutions seek entry points into the digital asset class, the combination of regulated structures, professional fund management, and innovative strategies makes ADAP an attractive proposition for regional allocators.

The introduction of the AltNovel Digital Access Portfolio is not just a milestone for 3iQ and AltNovel, but for the region’s transition toward a digitally-integrated financial infrastructure. It reflects a rising recognition that crypto and digital asset strategies are not fringe investments, but emerging pillars of modern portfolio management.

As more institutional investors in the Middle East seek exposure to the digital economy, products like ADAP, that balance innovation with professional risk oversight, are likely to become the blueprint for regulated crypto finance in the region.