Crypto and blockchain have not been around that long. As a result, it has a very small market value compared to other asset classes, which means that you can also achieve higher returns than with shares. A Spanish investment bank wants to outperform the market as a whole with a new fund.
Spanish bank wants crypto-only investment fund
A&G Banco has that announced in a press release. The investment fund seems to carry the name FIL, although it is not clear what exactly this stands for. It specifically targets the crypto market, but that’s not the only thing that makes it stand out. The assets will be actively managed, instead of the fund simply buying crypto for the longer term. With that tactic it wants to outperform the rest of the market.
At Blockworks A&G CEO Román González Torres stated that the fund is the first actively managed crypto fund in Europe. The team can invest the money however it wants, as long as it reserves at least 70% of the capital for crypto investments. Up to 30% of the money can be cash. Nevertheless, it will continue to invest exclusively in crypto.
Secure crypto fund
The company will be registered in Spain, and A&G has already had discussions with policymakers. They warned at length about the risks, such as those coming from not fully regulated crypto companies. To eliminate that risk, FIL uses “safer, regulated financial products (that policymakers have visibility into).”
It does not say exactly what type of assets these are, but it will probably concern, for example, listed companies and funds. For example, institutions on exchange funds such as Grayscale’s GBTC often find it a safer option than buying bitcoin on a crypto exchange such as Binance or Coinbase. The latter were sued in June by the US Securities and Exchange Commission (SEC).
A&G has approximately $12.4 billion in assets under management. This makes it one of the smaller banks in Spain, but apparently it is not averse to a little more risk with crypto.
