Hauck & Aufhäuser to Launch a Crypto Fund in January 2021
German private bank Hauck & Aufhäuser Privatbankiers AG announced the creation of its first crypto fund and its launching on January 1, 2021. The fund would cover 85 percent of the total crypto asset market.
Changes always arrive at everybody, including those who are the oldest. The key in the evolution process is whether to adapt or die. Well, Hauck & Aufhäuser has adapted itself to the new age of digital assets. The bank, founded in 1796 and the oldest in Germany, has partnered with Kapilendo to support crypto access to its clients from the first day of 2021. The bank will use its innovative division for that.
The press release published by the bank said:
Hauck & Aufhäuser Innovative Capital GmbH, founded by Hauck & Aufhäuser Privatbankiers AG, and the Berlin fintech Kapilendo are jointly launching the HAIC Digital Asset Fund I (WKN / ISIN A2QKF2 - DE000A2QKF2). From January 2021, professional and semi-professional investors can invest in a targeted and cost-effective way in a diversified portfolio of leading crypto assets such as Bitcoin, Ether and Stellar.
The bank stated that the minimum investment in the fund is 200 thousand euros so that it would bring bitcoins and altcoins to the public, but not for the masses.
The HAIC Digital Asset Fund I will have a cost of 2.05 percent on the total volume. Focused on semi-institutional and institutional clients, the fund's subscription period is not limited, and it would be marketed by Hauck & Aufhäuser and Kapilendo Invest AG.
Hauck & Aufhäuser Innovative Capital GmbH will manage the portfolio, while Kapilendo will act as the crypto depositary.
Dr. Holger Sepp, member of the board of Hauck & Aufhäuser, said in the press release:
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.
The Expert Investor Takeaway
The crypto market has indeed expand for sure in 2020, and 2021 will confirm that trend with crypto assets getting more relevance in the investing industry and the technologies behind every token will become more popular.
In the last years, one fundamental boundary for the crypto industry was regulation and trust. That has changed in 2020, with several financial institutions launching crypto assets, funds, and indexes.
Last week, as an example, S&P Global announced indexes for several crypto assets, while banks such as JP Morgan are developing global payment schemes using blockchain and their very own token.
In that line, the move done by Hauck & Aufhäuser, the oldest bank in Germany, is another confirmation for that trend. Cryptos are here to stay, and traditional banking is starting to acknowledge it.
As Sepp said in the press release, banks "are seeing that digital assets and cryptocurrencies are becoming increasingly attractive with institutional investors." SO, they want their piece of cake.
Recently, the interest in crypto adoption in Germany is increasing. Even the Finance Ministry is urging the European Central Bank to promote and support the digital ecosystem, including their own digital euro.
With new funds and other financial instruments focused on crypto assets, there is no other way for Bitcoins, altcoins, and tokens to become more and more popular. So, prices would go up. However, be careful of profit booking situations and eventual short selling.
Bitcoin is trading negatively on Monday as the crypto asset is inside in a consolidation period following the 19,950 - 20,000 level test last week. In the last few days, BTC/USD has been moving in a range between 18,500 and 19,600.
Currently, BTC/USD is being exchanged at 19,190.35, which is 0.88 percent positive on the day. In the year, the crypto king is 167 percent positive against the US dollar.
Experts are confident on the Bitcoin upside as they believe that a potential stimulus package in the United States would hurt the US dollar while pushing BTC prices up. In addition, increasing regulated and trustable crypto instruments are taking the industry to another level, bringing new customers and investors.
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