Germany’s legacy bank with over 222 years of financial services tradition Hauck & Aufhauser will be launching a cryptocurrency fund in January 2021.
According to the official announcement, the cryptocurrency fund will be administered through the HAIC Digital Asset Fund and it is aimed at institutional investors with a minimum investment fund of €200,000 ($243,000), which is the benchmark for the crypto fund. The launch of the crypto investment fund by the German legacy bank comes following the growing embrace of cryptocurrencies by institutional players around the world.
Dr. Holger Sepp, member of the board of Hauck & Aufhäuser, said in a statement:
“We see that digital assets and cryptocurrencies are becoming increasingly attractive with institutional investors. With the launch of our first crypto fund, together with Kapilendo, we have created 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.”
Per the announcement, the fund managers will take a passive investment approach and any such investment in cryptocurrencies will be based on each crypto’s current market capitalization. Kapilendo, a German blockchain startup will help provide the secure storage of the assets in the fund.
Cryptocurrency hedge funds are not uncommon in other world economies particularly the United States of America where renowned hedge funds such as Galaxy Digital, and Tudor Investment Corporation, being managed by Billionaire hedge fund manager, Paul Tudor Jones amongst others. Hedge funds are playing a key role in the current bullish rally of bitcoin as they provide the gateway through which other institutional investors stock up on crypto.
The series of support key players such as PayPal, Square, and now Hauck & Aufhauser are granting to Bitcoin and cryptocurrencies as a whole is not just contributing to the current bullish rally in Bitcoin’s activities, but it is projected to attract more investors in the near future.
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