With more institutional investors flocking into the crypto space, a private German bank announced today that it would launch a cryptocurrency fund specifically for these investors in January 2021.
According to a press release, the bank, Hauck & Aufhäuser Innovative Capital GmbH, stated that the crypto fund named HAIC Digital Asset Fund would allow institutional clients to invest in few cryptocurrencies, such as BTC, ETH, and XLM.
HAIC Digital Asset Fund will adopt a “passive investment strategy,” where the supported cryptocurrencies will be allocated based on specific criteria, including market capitalization.
Dr. Holger Sepp, a member of the board of Hauck & Aufhäuser, said the initiative became necessary due to the increased institutional interest in recent times.
“[…] with the launch of our first crypto fund, we have created an innovative investment vehicle that gives our customers inexpensive and secure access to the new crypto asset class,” Sepp added.
The Frankfurt-headquartered bank said it has partnered with Berlin-based digital asset custody firm Kapilendo Custodian to provide safe and secured storage for clients.
Kapilendo, which aims to bridge the gap between traditional and tokenized finance instruments, makes its custody service available for SMEs, asset managers, financial institutions, and wealth managers.
Notably, HAIC Digital Asset Fund will only be made available through the bank and kapilendo channels, with a minimum investment of €200,000 (US$243,000).
More Institutional Players
In recent times, institutional interests in Bitcoin and other cryptocurrencies have soared tremendously. Bitcoin is currently seen as a hedge against inflation, as the asset continues to rally while the value of most traditional assets keeps plummeting.
This feat made the cryptocurrency earn the title “digital gold,” and the asset is tipped to outperform the popular yellow metal gold in the near future.
Being the best performing financial instrument this year, Bitcoin has been adopted by many institutional investors as they hope to shield themselves from the global economic meltdown ushered in by the coronavirus (COVID-19) pandemic.
Meanwhile, Coinfomania reported In August that MicroStrategy announced a groundbreaking purchase of 38,250 bitcoin amounting to $425 million at the time.
