Private German Bank Set To Launch Digital Asset Funds Next Year

Private German Bank Set To Launch Digital Asset Funds Next Year

A private German bank known as Hauck & Aufhauser is planning to launch its cryptocurrency fund by 2021. The company explained that the launch would come as early as January next year for an institutional clientele and would have some of the world’s largest cryptocurrency such as Ether, Bitcoin, and Stellar.

The 200-year-old bank will be partnering with Kapilendo to make this possible. The fintech company will help the private bank develop the right technology to ensure its current plans’ smooth sailing. On Thursday, the public was informed of its projects via a press release with HAIC digital fund I scheme in early 2021. The bank explained that the funds would be strictly for heavy investors and institutional contributors, with the investment fees at a fair rate of 2.05%

Why private bank plans to launch funds fintech

A board member of the old bank reported one of the primary reasons behind the launch being Institutional investors. He explained that high net worth individuals and institutional investors are taking a liking for digital assets, which lead to the new creation. He reasoned that the industry players needed a competent institution to handle their digital assets in security, affordability, and quality.

The bank explained that the investment would be a minimum of €200k, showing that it is strictly for full-time investors. It has plans of diversifying the clientele’s funds to help gain returns. The fintech company, in partnership with Hauck & Aufhauser, would effectively handle everything as regards the in-demand cryptocurrencies around the world.

It was reported that managers would be big players in the crypto funds. They would take a passive strategy based on the funds, and the eventual allocation will be strictly under the market’s capitalization. The Berlin-based company, Kapilendo, will bring significant turns to help ensure storage of the digital currency. The bank is planning a groundbreaking idea, which might contribute to the progress of cryptocurrency in the world today. It’s safe to note that cryptocurrencies are yet to be legal tenders in Germany since some individuals referred to a speculative asset.

How high net worth companies are investing in bitcoin

Bitcoin sees an ever-increasing demand from big pockets with the recent investments public companies have made in the cryptocurrency. A public business also recently bought almost $500 million worth of the digital asset to show that claim. Investors explained that the crypto is a secure asset to reduce hyperinflation cases and how the instability in crypto prices might be increasing demand. With current trends and increased institutional buying, Bitcoin is progressing in the digital asset industry.

A billionaire, Kelvin O’Leary, explained that he is willing to invest his billions into the cryptocurrency if the currency is legalized and regulated adequately by governmental bodies. He could eventually contribute up to 20% of his net worth into the cryptocurrency. Kelvin previously had criticized Bitcoin, reporting that it’s not a real currency. He presently revealed he has nothing against the crypto but will try to understand the digital assets industry.

David Pražák