A bank from Germany recently announced a new way for professional and semi-professional investors to invest in leading crypto assets like bitcoin and ethereum.
Veteran German Bank Hauck & Aufhäuser is set to launch a crypto fund next year as the demand for crypto assets increases. This bank that goes back to 1796 will feature Bitcoin (BTC), Ethereum (ETH), and Stellar (XLM) in its imminent crypto fund. The products will be expedited by the bank’s recently licensed digital asset fund named Hauck & Aufhäuser Innovative Capital (HAIC).
This initiative targets institutional investors and high net worth individuals who can fork a minimum of €200,000 ($242,500) towards investing in the fund. As for the charges, the bank will impose a 2.05% investment fee, the industry average. Remarkably, the investors will be flexible to invest and divest their funds from the Hauck & Aufhäuser at any time.
To make this crypto service possible, the bank partnered with a Berlin domiciled Fintech firm by Kapilendo. The entity will be tasked with the storage of HAIC’s crypto fund, and it is expected to provide a secure ecosystem where user funds will be SAFU.
Snowballing Demand for Crypto Products
Hauck & Aufhäuser comes as no surprise has given the spike in crypto interest, particularly by institutional investors. Last September, the bank’s board chairman, Michael Bentlage, noted an increased interest in crypto for they are sorted a BaFin license for HAIC. His sentiment has been reiterated by another board member Holger Sepp who has expressed optimism in the crypto fund milestone.
“We are seeing that digital assets and cryptocurrencies are becoming increasingly attractive with institutional investors,” stated Dr. Holger Sepp, member of the board of Hauck & Aufhäuser then further adding:
“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.”
Kapilendo is the crypto custodian for the new Hauck & Aufhäuser Innovative Capital (HAIC).
It is a passive digital assets fund with allocation based on market cap and other qualitative and quantitative criteria, with at least €200,000.
They are fully licensed by the German Financial Supervisory Authority (BaFin), and both are established financial services providers that are expanding into crypto.
According to Holger Sepp, it is to meet client demand, as the institutional investors show rising interest in bitcoin because of its ability to act as a hedge.
No Comment