Former UBS innovation lead establishes cryptocurrency fund
12 June 2017 | 10657 views | 0
Source: Cryopto Fund
Europe's first diversified Cryptocurrency Fund Crypto Fund AG is launching the Cryptocurrency Fund, which will be based on the Cryptocurrency Index, investing in the most important cryptocurrencies such as Bitcoin, Ether, Ripple, and other well-established cryptocurrencies.
The Swiss Fund will be registered with FINMA and embodies the first diversified investment vehicle for digital assets available to professional investors. With the Cryptocurrency Fund™ the Zug (Switzerland) based Crypto Fund AG will offer an index-based, passive product according to the Swiss Collective Investment Schemes Act (KAG), which provides a regulated access to cryptocurrencies for professional investors.
The Cryptocurrency Index™ is calculated by a well-known index provider, and invests in the largest virtual currencies by market capitalization and liquidity. This ensures a high level of diversification which leads to a reduced volatility of the fund, while at the same time ensuring the ability to benefit from the emergence and high growth rate of new cryptocurrencies.
Jan Brzezek, CEO of Crypto Fund AG, explains: "We recognized the growing demand of qualified investors for a regulated and transparent gateway to cryptocurrencies and realized that we need a proven and recognized legal framework allowing qualified investors to invest in cryptocurrencies. Unlike the Winkelvoss-ETF, which was rejected by the SEC, we use the regulated and proven Swiss fund structure according to KAG, where the asset manager, the fund management company and the custodian bank are legally separate from each other. The Fund will be highly diversified and will not list on an exchange and exclusively target qualified investors.”
The team headed by cryptocurrency expert Mr. Brzezek, who until recently worked for the President of UBS Asset Management and UBS Group EMEA and was also nominated as Group Innovation Expert by UBS, is complemented by experienced other finance professionals and is supported by well-known Swiss entrepreneurs: Dr. Tobias Reichmuth, CEO and Founder of the successful infrastructure fund manager SUSI Partners AG, has joined Crypto Fund AG both as founding investor and Chairman of the Board. Together with Fintech expert and investor Marc P. Bernegger (Board Member) and further soon to be announced senior banking industry professionals, they support the fast growth of Crypto Fund AG.
Mr. Reichmuth says: "Private and institutional investors alike show a keen interest for cryptocurrencies as a deflationary value storage medium independent of central banks. Access via a regulated vehicle, to execution and safe storage were so far missing. The Cryptocurrency Fund™ will be the first regulated fund globally which provides a safe and easy access to the rapidly growing cryptocurrency world.”
The fact that Switzerland was chosen as a fund domicile is not a coincidence. Mr. Bernegger adds: “The term "Crypto Valley" has quickly gained acceptance and demonstrates the concentration and growth of Cryptocurrency companies and foundations in the region of Zug and Zurich. It is also important to mention that Switzerland with its good reputation in asset management and stable regulation has already accepted virtual currencies as an asset class. In addition, the Swiss mountains offer safe and tested warehouses for digital assets.”
The law firm MME Legal, which is specialized in blockchain and ICOs, advises Crypto Fund AG on legal matters. The launch of the Fund is expected for Q4 2017. Initial discussions with FINMA have already taken place.