German Financial Group to Launch Crypto Index Funds for Institutional and Retail Investors
A decentralized VC group is launching a series crypto index funds to help bring new capital from the traditional financial markets to the crypto industry.
Iconiq Funds, the asset management arm of Germany-based Iconiq Holding — the team behind the ICO and token sale accelerator program Iconiq Lab — is launching a series of digital asset index funds beginning in Q4 2018, the company announced on Aug. 17, 2018. Investment into crypto assets will become available through traditional and regulated financial vehicles, such as exchange-traded funds (ETFs) and exchange-traded notes (ETNs).
The first digital asset index fund is planned to be launched under Maltese jurisdiction as a Professional Investor Fund (PIF). It is currently under review by Malta Financial Services Authority (MFSA).
The company claims the “diversified exposure to the digital assets market” as a key selling point for this new series of instruments. An investment fund essentially hides the intricacies of crypto assets from its participant, offering participation in a selected group of tokens. An investor expects that, even if some tokens of the group won’t perform well, the growth of others will compensate for it.
Iconiq Funds says the company will offer its financial products under the supervision of a governmental watchdog — such as MFSA for Malta. The team explains that, for many conservative investors, the lack of regulatory oversight was a key reason to avoid exposure to crypto assets.
Maximilian Lautenschläger, Iconiq Holding’s managing partner, believes that such investment vehicles could help bring new capital to the crypto industry from the traditional financial markets. “Iconiq’s aim is to make ICOs and crypto investments accessible to institutional investors, family offices and retail investors. Only through such r