Hauck & Aufhäuser, a private bank from Germany, recently announced plans to launch its first crypto fund. The fund, named the HAIC Digital Asset Fund I, is scheduled to launch in less than a month — on January 1st, 2021.
A new crypto fund to cover a portfolio of assets
The crypto industry is still facing a lot of issues and setbacks. Volatile prices, regulatory uncertainty, scalability issues, and more are all preventing institutional investors to truly get involved with digital coins. Of course, there are alternative methods for them to get into crypto.
One such method would be a Bitcoin ETF. However, the US SEC refuses to approve any Bitcoin ETF proposal that gets submitted. Another possibility is crypto funds, and one such fund is about to be launch in only a few weeks.
The HAIC Digital Asset Fund I comes as a collaboration between the bank and Berlin fintech Kapilendo. Its aim is to attract institutional and wealthy investors who might be interested in investing in an entire portfolio of cryptos.
The portfolio will, reportedly, include the likes of Bitcoin (BTC), Ethereum (ETH), and Stellar (XLM). Furthermore, the fund will also pursue a more passive investment strategy. In other words, the crypto allocation ratio will be based on a number of criteria, including the market cap.
It is also said that the fund will cover 85% of the total crypto asset market.
Germany sees a growing interest in crypto among institutions
The minimum investment will certainly be quite high, thus barring out retail investors, and only allowing institutions to participate. According to what is known, the minimum investment amount will be $242,000 (200,000 EUR). There will be no limits on the subscription period, while the fees will sit at 2.05% of the fund volume.
The bank will act as the fund manager, while Kapilendo will be the crypto depository. The two decided that this is the time to make such a move, as institutional interest in crypto investing is growing rapidly in Germany.
The partners are merely creating an “innovative investment vehicle that gives our customers inexpensive and secure access to the new crypto asset class while meeting the established quality standards and high demands of Hauck & Aufhäuser,” as noted by the board member, Holger Sepp.
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