With the launch of a crypto fund in early 2021, Hauck & Aufhäuser, one of the oldest traditional banks in Germany, is entering the cryptocurrency market.
The move follows the German supervisory authority’s acquisition of a capital management license for its investment subsidiary in September by the bank.
Hauck & Aufhäuser to Offer Fund for BTC, ETH, and XLM
According to Fundview, Hauck & Aufhäuser will launch a crypto fund through its subsidiary Hauck & Aufhäuser Innovative Capital (HAIC) GmbH in January 2021. The product, HAIC Digital Asset Fund I, will focus on Bitcoin (BTC), Ether (ETH), and Stellar. (XLM).
Fintech Kapilendo, a Berlin-based digital banking platform, will partner with HAIC to offer the crypto investment solution. Both institutional and semi-institutional investors will benefit from the crypto fund, according to reports.
The fund’s minimum investment is set at €200,000 ($242,500) with a 2.05% fee. Hauck & Aufhäuser board member Holger Sepp remarked regarding the fund that it is clear that digital assets and cryptocurrencies are becoming increasingly attractive to institutional investors.
With the launch of their first crypto fund, together with Kapilendo, they created an innovative investment tool through which our customers can access a new class of crypto assets cheaply and safely.
When launched, the HAIC crypto fund will culminate the bank’s crypto acceptance policy in 2020.
Germany’s Emerging Crypto Investment Scene
In early September, when Hauck & Aufhäuser received the BaFin Capital Management (KVG) license for its subsidiary HAIC for digital assets, CEO Michael Bentlage noticed a growing interest in cryptocurrency investments.
Bentlage stated that the forecast predicts an increase in product demand for funds for digital assets, and we also see strong customer interest. Therefore, we must set the right path from the start and give our customers access to this innovative asset class.
Hauck & Aufhäuser established the crypto foray in 1796, indicative of Germany’s booming cryptocurrency investment scene. Back in August, it was highlighted that the country was quietly establishing itself as a global superpower in the burgeoning industry.
This emerging crypto boom is primarily due to a flurry of favorable regulations over the past year.
In Nov. 2019, German regulators removed previous legal prohibitions against Banks offering cryptocurrency-related services. Indeed, Hauck & Aufhäuser’s crypto fund would not have been possible without this decision.
In August 2020, the German Finance Ministry also introduced a draft law on tokenized blockchain securities. The move followed a stipulation from March that classified cryptocurrencies as financial instruments.