Zug based Crypto Fund has unveiled plans to launch the Cryptocurrency fund, which will invest in leading cryptocurrencies including Bitcoin, Ether and Ripple.
The strategy is expected to launch in the fourth quarter of 2017 and will be Finma registered, making it the first regulated cryptocurrency fund available to professional investors, according to the group.
To run alongside the new fund, Crypto Fund will offer the Cryptocurrency Index, which will invest in the largest virtual currencies by market capitalisation and liquidity. It will be calculated by a well-known index provider.
The firm will offer the index-based passive product according to approved the Swiss Collective Investment Schemes Act (KAG) structure. This provides regulated access to cryptocurrencies for professional investors.
The investment team is led by Crypto Fund CEO, Jan Brzezek, who until May 2017 worked as the business manager for the president of UBS Asset Management.
As cryptocurrency continues to gain momentum, the region of Zurich and Zug has been named the ‘Crypto Valley’ for its concentrated growth in the area
It is for this reason that Switzerland was chosen as the fund domicile, Marc Bernegger, board member at Crypto Fund explained.
'Switzerland - with its good reputation in asset management and stable regulation - has already accepted virtual currencies as an asset class. In addition, the Swiss mountains offer safe and tested warehouses for digital assets.'
Commenting on the launch, Brzezek said: 'We recognised the growing demand of qualified investors for a regulated and transparent gateway to cryptocurrencies and realised that we need to adopt this new underlying to a proven and recognised legal framework allowing qualified investors to invest in cryptocurrencies.’
Adding to this, the chairman of the board Dr Tobias Reichmuth said: 'Private and institutional investors alike show a keen interest for cryptocurrencies as a deflationary value storage medium independent of central banks.
The fund will not list on an exchange but will exclusively target qualified investors.