Swiss grant first licence to asset manager for crypto fund

June 18, 2018
Chris Wheal

The Swiss authorities in a first, granted Crypto Fund AG a licence to distribute collective investment schemes to qualified investors.

Currency barometer: Swiss authorities approve asset manager for crypto funds  Source: Shutterstock.com

The Zug-based Crypto Fund AG is one of three subsidiaries of Crypto Finance Group, a fintech company, led by former UBS banker Jan Brzezek. The passive fund is aimed at institutional investors such as: banks, asset managers, family offices investing directly and diversifying in to crypto assets.

The licence is said to be the first granted to a crypto company by the Swiss Financial Market Supervisory Authority (FINMA). In January this year, Brzezek in an interview with Bloomberg, described it as: “It’s a passive fund that tracks the first blue chip index for crypto currencies.”

According to Bloomberg, the blue-chip index is calculated through the SIX Swiss Exchange and is weighted by market capitalisation and includes: Bitcoin, Bitcoin Cash, Ethereum and Litecoin, although the index will be extended to a total of 10 currencies.

Brzezek also said that while the volatility of crypto currencies over other asset classes is “exceptionally high”, he classed it as an opportunity particularly given that “other asset classes, there is hardly any room for improvement”.

Explosive growth in crypto investment funds

The explosive growth of new crypto investment funds have been the mirror opposite of  current crypto markets which have been somewhat sluggish in the first half of the year.

Crypto Fund Research showed that so far in 2018, the cryptocurrency and blockchain investment universe in the US was likely to surpass that of 2017 which was a record year with 107 new crypto fund launches.

Crypto funds launched in 20 different countries in 2018 Source: Crypto Fund Research

Josh Gnaizda, founder of Crypto Fund Research, said in a press release: “While crypto hedge funds constitute a small portion of hedge fund assets, they are one of the fastest growing sectors in the hedge fund industry. In addition, many venture capital funds are including cryptocurrency and blockchain assets in their existing portfolios, or creating new funds specifically to invest in digital assets.”

 

Post written by Chris Wheal
Chris Wheal is editor of OpenLedger's news and features service. An award-wining business journalists himself, he runs a team of freelance journalists from across the UK and north America.

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