German bank Hauck & Aufhäuser, established in 1796, announced to allow investors to invest into crypto assets such as bitcoin and ethereum. This bank together with Innovative Capital GmbH and Berlin-based fintech Kapilendo are planning launch Digital Asset Fund.
Growing demand for crypto asset fund
“Forecasts assume an increasing demand for fund products for digital assets and we are also seeing strong interest from customers. That is why it is important to us to set the right course early on and to give our customers access to this innovative asset class. ” – Michael Bentlage, CEO of Hauck & Aufhäuser.
The digital fund is aimed at semi-institutional and institutional investors who want to invest in a portfolio of leading crypto assets such as Bitcoin, Etherium and other.
“We are seeing that digital assets and cryptocurrencies are becoming increasingly attractive with institutional investors. With the launch of our first crypto fund, we and Kapilendo have created an innovative investment vehicle.” – Holger Sepp, member of Board of Hauck & Aufhäuser.
Representitive of Fintech Kapilendo AG, which will act as crypto custodian, added: “In its function as a crypto depository Kapilendo Crypto AG is tied into all relevant interfaces of the asset servicing and technical integration is done seamlessly.”
Crypto Asset Fund in Germany
This German crypto asset fund pursues a passive investment strategy, whereby the allocation of the crypto values is based on the current market capitalization and other quantitative and qualitative criteria.
- The total ongoing fees for the fund are 2.05 percent of the fund volume.
- The subscription period is not limited, the minimum investment is EUR 200,000.
German legal regulations for crypto industry
Currently electronic securities are called digital assets. Until now, German law required securities to be represented in a paper certificate. In August, however, the federal government presented a bill which introduced electronic securities. If the law to be passed, electronic securities registers would also be required for certain asset classes which are related to blockchain technology and decentralized database technology.