German private bank Hauck & Aufhäuser has announced the launch of its first cryptocurrency fund, HAIC Digital Asset Fund I, which will go live on January 1, 2021.
The new product is aimed at institutional and large investors looking to diversify their capital into Bitcoin, Ethereum and Stellar. The fund will adhere to a passive investment strategy with a cryptocurrency distribution ratio based on market capitalization and other criteria. According to the company, the portfolio will cover 85 percent of the entire cryptoasset market.
The bank’s decision to contact cryptocurrencies seems clear. The fact is that against the backdrop of a pandemic in 2020, a lot of investors decided to move away from traditional investment instruments and experiment with coins. Nevertheless, the latter work in accordance with computer code and do not depend on the actions of the government and officials. And this is already a serious argument in the current conditions.
As a result, many companies have invested huge amounts of money in Bitcoin in recent months. For example, Grayscale bought more than 64 thousand BTC in November – and this despite the continued growth in the rate of the first cryptocurrency.
Here is a chart of the BTC price for the last two weeks
Also among the heavyweight BTC investors are MicroStrategy, Galaxy Digital, Square, 3iQ and others.
We checked the current rate: today Bitcoin is at the level of 19,087 dollars, which practically does not differ from the cost of a day ago. With a market capitalization of $ 354 billion, the daily trading volume was 22.68 billion.
Banking cryptocurrency fund – what is it?
The initiative is being developed with the support of the German fintech startup Kapilendo. It will act as a repository of digital assets, while the bank employees will be in charge of investor portfolio management. Hauck & Aufhäuser board member Holger Sepp said that interest in crypto among institutions in Germany is constantly growing. Here is his line in which he shared the state of the industry at the moment. The quote is from Cointelegraph.
We are seeing digital assets and cryptocurrencies becoming more and more attractive to institutional investors. With the launch of our first crypto fund, together with Kapilendo, we have created an innovative investment vehicle that gives our clients low-cost and secure access to a new class of crypto assets, while adhering to the established quality standards and high Hauck & Aufhäuser requirements.
That is, experts confirm that cryptocurrencies are beginning to enjoy popularity among investors who might not have contacted them before. Obviously, the reason in this case was the example of other large companies, whose leaders have already managed to invest in coins.
Now you don’t have to leave the bank to invest in a crypt!
Recall that cryptocurrencies and the banking sector have increasingly begun to intersect lately. For example, in September of this year, Kraken, a large trading platform, received a license to establish its own bank in the United States. And the news was really big – especially considering the amount of criticism that has poured out on Bitcoin and other coins in recent years.
Such news is only positive for the development of the cryptocurrency industry. It’s nice to know that some bankers understand and embrace innovation rather than reject it. Hopefully, the Hauck & Aufhäuser initiative will find great popularity among local customers.
We also believe that such a turnaround will, in addition, attract inexperienced investors who have heard about cryptocurrency, but were afraid to get involved with it against the background of sounding criticism from the same bankers. And since now access to coins will be provided by the bank – and it still inspires more confidence in many people – the chance of investing in a blockchain asset will be much higher.