Hilbert Nabs Enigma Nordic in $32M Bet on Institutional Crypto Alpha

Swedish investment firm Hilbert Group has announced the acquisition of Enigma Nordic, a high-frequency trading platform specializing in digital assets, in a deal valued at up to $32 million. The transaction gives Hilbert full ownership of Enigma's market-neutral trading system, which executes strategies across global exchanges. This move aligns with Hilbert's strategy to bolster institutional-grade crypto trading capabilities as the market evolves.

The acquisition includes $7.5 million in newly issued shares at closing and performance-based earn-outs of up to $17.5 million, contingent on Enigma's strategies generating $40 million in net income. Shares issued to Enigma's founders are subject to a three-year lock-up, with clawback provisions if performance targets are not met as reported.

Enigma Nordic has processed over $5.4 billion in trading volume in 2025 and claims a Sharpe ratio exceeding 3.0, a rare benchmark in scalable digital asset strategies. The platform, founded by Andereas Friis and Jonas Söderqvist, previously operated in stealth mode before launching in 2024. Its team has a track record of building and scaling public companies, including their prior work with digital marketing firm Speqta.

Strategic Expansion and Institutional Demand

Hilbert Group aims to integrate Enigma's platform into its institutional products, including its Bitcoin-denominated hedge fund launched in late 2024 with Xapo Bank. The platform's ability to execute market-neutral strategies across multiple exchanges is expected to enhance Hilbert's systematic trading capabilities. The firm plans to roll out new products in the coming quarters, leveraging Enigma's technology for both its trading desk and asset management arm.

The acquisition reflects growing demand from institutional investors for quant-driven crypto exposure. As digital assets shift from retail to professional markets, demand for risk-managed strategies, transparent execution, and consistent returns is increasing. Hilbert CEO Barnali Biswal highlighted Enigma's cutting-edge technology and entrepreneurial team as key drivers of the deal according to reports.

Risks and Performance Considerations

Despite Enigma's high trading volume and strong Sharpe ratio, high-frequency trading (HFT) in crypto faces inherent risks. These include alpha decay, where returns diminish as capital scales, and narrow profit margins due to the high turnover required. Hilbert has structured the deal to mitigate these risks through performance-based clauses and lock-up periods for Enigma's founders .

Enigma's platform is designed to profit from short-term price inefficiencies rather than directional market moves. This model has gained traction as crypto markets mature and institutional players seek more sophisticated tools. However, the firm must prove its strategies can consistently deliver returns under varying market conditions .

Broader M&A Trends in Crypto

Hilbert's acquisition is part of a broader increase in M&A activity in the crypto space in 2025. Regulatory clarity and renewed interest from traditional finance players have created a more favorable environment for deal-making. Top venture capital firms had predicted an uptick in transactions this year, and Hilbert's move supports that trend .

The deal also highlights the shift toward algorithmic and data-driven trading strategies. As institutional investors seek scalable and diversified revenue streams, the integration of advanced trading platforms becomes a strategic priority. Enigma's market-neutral approach and proven performance metrics make it an attractive asset in this transition .

What This Means for Investors

For investors, Hilbert's acquisition signals a firm's commitment to expanding its institutional-grade crypto offerings. By integrating Enigma's platform, Hilbert aims to enhance its ability to deliver consistent returns and diversified exposure. The performance-based structure of the deal provides an additional layer of accountability, as Enigma's success will be tied directly to future payouts .

New products based on Enigma's technology could attract further capital inflows into Hilbert's funds, especially as institutional investors continue to seek professionalized strategies. The firm's hedge fund, which launched with $200 million in initial capital, is positioned to benefit from this integration, offering systematic crypto exposure to a growing client base.