German private bank Hauck & Aufhäuser announced its first crypto fund, the HAIC Digital Asset Fund I, launching Jan. 1, 2021.
According to a report on FundView, the initiative, a collaboration with Berlin fintech Kapilendo, will target institutional and semi-institutional investors who want to invest in a portfolio of crypto assets, including Bitcoin (BTC), Ether (ETH) and Stellar (XLM).
The fund will pursue a passive investment strategy, with a crypto allocation ratio based on market cap and other criteria. According to the company, the portfolio will cover 85% of the total crypto asset market.
The minimum investment in the fund is 200,000 Euros ($242,000), with no limit on the subscription period, and total ongoing fees for the fund are 2.05% of the fund volume.
Kapilendo will act as the crypto depository while Hauck & Aufhäuser is responsible for fund management. Board member Holger Sepp explained that institutional interest in crypto in Germany is growing:
“We are seeing 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.”
Despite the SEC’s continued refusal to approve a Bitcoin ETF, ever more vehicles are becoming available for institutional investors to enter the crypto market.