In a significant sign of the rising adoption of cryptocurrencies in Spain, A&G, the leading Spanish private bank, has unveiled its first crypto investment fund offering. The bank’s decision comes after observing the growing interest from investors in the crypto market. Europa Press reported that A&G successfully registered the fund’s brochure with the regulatory National Securities Market Commission (CNMV), marking it as the country’s pioneering crypto investment fund.
The bank emphasized that crypto investment, when managed with efficient risk management and control, can be channeled through investment products that are safer and better regulated. The bank believes that funds involving professionals subject to supervision provide a secure option for crypto enthusiasts seeking to invest in the rapidly evolving digital asset space, while a study shows that three out of four people know about Crypto in Spain.
To ensure regulatory compliance and enhance the fund’s credibility, A&G has partnered with esteemed financial institutions. CACEIS, the joint asset servicing arm of European banking powerhouses Crédit Agricole and Santander, will function as the fund’s depositary. Additionally, PwC (PricewaterhouseCoopers) will serve as the fund’s auditor, further bolstering its reliability.
While the exact composition of the crypto investment fund has not been finalized, A&G has provided some insights into its strategy. The fund is expected to have exposure ranging from 50% to 100% to cryptocurrencies, primarily through financial instruments linked to tokens. Both Bitcoin (BTC) and Ethereum (ETH) will be included in the fund’s portfolio. Furthermore, there will be a “minority” exposure to other cryptocurrencies that demonstrate satisfactory levels of volume and liquidity.
Potential investors need to be aware that this investment product may not be suitable for those planning to withdraw their funds within a short period, as it recommends a minimum investment horizon of four years. The bank has taken the responsible step of incorporating mandatory warnings from the CNMV in the fund’s brochure. The regulator has highlighted the high levels of risk associated with cryptocurrencies, including extreme volatility, complexity, lack of transparency, custody, and concentration risk, which may lead to the total loss of invested funds.
The launch of A&G’s crypto investment fund aligns with recent developments in the Spanish crypto landscape. In March, a prominent Spanish MP resigned from his parliamentary position to pursue a career in the crypto industry, reflecting the growing interest and potential of this digital asset class. Furthermore, a tax firm reported that around 70% of Spanish crypto holders who declared their taxes experienced losses on their token investments during the fiscal year 2022.
On July 12, 2023, Todayq News reported that Spain’s Ministry of Economic Affairs and Digital Transformation announced a commitment of over $4 million in grants for metaverse-related projects. The grants program will prioritize gaming and entertainment organizations while also considering experimental projects involving virtual, extended, and Web3 organizations.
As Spain’s appetite for cryptocurrencies and web3 continues to grow, A&G’s pioneering fund offering signifies a major milestone in the nation’s financial landscape. However, potential investors are encouraged to exercise caution and conduct thorough research before venturing into this high-risk, high-reward investment space.