Veteran German Bank to Launch Crypto Fund Featuring BTC, ETH & XLM in 2021
Veteran German Bank Hauck & Aufhäuser is set to launch a crypto fund in 2021 as the demand for crypto assets increases. This bank, which dates back to 1796, will feature Bitcoin (BTC), Ethereum (ETH), and Stellar (XLM) in its upcoming crypto fund. The products will be facilitated by the bank’s recently licensed digital asset fund dubbed Hauck & Aufhäuser Innovative Capital (HAIC).
This initiative mostly 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. Notably, investors will be flexible to invest and divest their funds from the Hauck & Aufhäuser at any time.
To roll out this crypto service, the bank has partnered with a Berlin domiciled Fintech firm by Kapilendo. This entity will be tasked with the storage of HAIC’s crypto fund and is expected to provide a secure ecosystem where user funds will be SAFU.
Increasing Demand for Crypto Products
The move by Hauck & Aufhäuser comes as no surprise given the spike in crypto interest, especially by institutional investors. In September, the bank’s board chairman, Michael Bentlage, noted an increased interest in crypto as they sorted a BaFin license for HAIC. His sentiments have since been reiterated by another board member Holger Sepp who expressed optimism in the crypto fund milestone,
“We see that digital assets and cryptocurrencies are becoming increasingly attractive to institutional investors.”
Hauck & Aufhäuser crypto allocation model will be based on metrics such as the current market capitalization, liquidity, and qualitative stats. Sepp went on to highlight that the fund will open up more opportunities for the bank’s clients to access crypto investments,
“With the launch of our first crypto-fund, we have created an innovative investment vehicle together with Kapilendo, which provides our customers with a cost-effective and secure access to the novel crypto asset class.”