The fund, officially the HAIC Digital Asset Fund I, will hold Bitcoin, Ethereum, and Stellar, among others, and is aimed at high-net worth investors and institutional clients. Hauck & Aufhäuser has partnered with Berlin fintech player Kapilendo for the launch.
Investors are not limited to any particular subscription period, meaning they can choose to invest or divest from the fund at any time. However, the minimum investment is €200,000 ($243,000).
Clients will be charged the industry average of 2.05% of their investment as fees. All crypto allocations will be selected based on current market caps, qualitative data, and high liquidity to ensure a smooth sale. Hauck & Aufhäuser said the portfolio covers over 85% of the total market for crypto assets with that criterion in mind.
“We see that digital assets and cryptocurrencies are becoming increasingly attractive among institutional investors,” said Holger Sepp, member of the Board of Hauck & Aufhäuser, in a statement.
He added, “With the launch of our first crypto fund, we have created an innovative investment vehicle that gives our customers inexpensive and secure access to the new crypto asset class while meeting the established quality standards and high demands of Hauck & Aufhäuser.”
The bank had recently founded an investment company for incubating blockchain startups based in Germany, the announcement said.
The development is the latest in what has turned out to be a significant year for German regulations and the adoption of cryptocurrencies. The country recognized Bitcoin as a “legal financial instrument” earlier this year, listed several Bitcoin exchange-traded funds, and paved out several crypto regulations to ensure the industry’s future.