While bitcoin is having one hell of a ride, a Zug-based fund manager sees fit to launch a fund for investments in crypto-currencies. CEO Jan Brzezek says it won’t be the last.
Crypto Finance, a firm started in Zug in the summer of 2017, offers investors the opportunity to allocate their assets in crypto-currencies. The company earlier said it aimed to launch two funds for the purpose.
CEO Jan Brzezek, Tobias Reichmuth and Marc Bernegger, the two other members of the founding committee of Crypto Finance, now opened their first fund for investments and aim to attract $10 million in assets by the end of the month, according to a report by «Bloomberg».
Exchange Traded Crypto Fund
The product comes in the shape of a passive fund that mirrors the first blue-chip-index for crypto-currencies. The index developed by SIX includes bitcoin, bitcoin cash, ethereum and litecoin. The index will later be expanded to include as many as ten crypto-currencies. The investment vehicle is the first such listed exchanged-traded fund for digital currencies.
The fund is for institutional investors only and was launched offshore, Brzezek told «Bloomberg». Crypto Finance has however applied for a distribution license in Switzerland.
Nobody Knows
Bitcoin has fluctuated widely in recent weeks. Having risen to about 19,000 Swiss francs in December, the coin dropped back to about 10,000 francs today. Analysts diverge widely on the future value of the coin – from 100,000 francs to worthless.
Brzezek proclaims to be unsure about the future of bitcoin. He says that the coin may cost anything from 1,000 to 50,000 francs in a year from now. And another crypto-currency may yet replace bitcoin as the lead currency in this market segment.
