Will Swiss Crypto Fund AG be a success?

June 19, 2017

Some great news for the bitcoin and other cryptocurrencies have recently came out from Switzerland. A company by the name of Crypto Fund AG is planning to launch the first mutual fund dedicated to various digital currencies. CEO of Crypto Fund AG, Jan Brzezek, comments on a high volatility of the crypto currencies and his aim is to solve it by highly diversifying the investment portfolio with different cryptocoins. According to the company raising goals, it aims to attract 100m EUR during the first year of its existence. The forthcoming plans are even more optimistic as the fund’s aim is to get 3b EUR within the first 3 years of the operations. With such great news, it is possible to say that Europe will be a home to first-ever diversified mutual fund that is solely dedicated to the cryptocurrencies.

It seems like the location of the fund was selected quite properly. Swiss regulatory authorities have some great reputation for the quality in overseeing the financial services. Next to this, Switzerland hosts a significant number of various bitcoin startups and it treats cryptocurrencies as an asset class. All of these reasons will majorly contribute towards success of Crypto Fund AG. The company has already submitted its desire to obtain a regulation to the Swiss Financial Markets Supervisory Authority and is currently awaiting the license to be issues.

Previously there were cases when similar companies applied for the regulation, but these tries were not successful. Back in 2013 there was an attempt to launch the first Exchange Traded Fund (ETF) dedicated to cryptocurrencies in the US. Even though an ETF would be something quite different from a mutual fund, it would make the investments in the bitcoin much more attractive and accessible to the general public. However, the application was rejected by the Securities and Exchange Commission (SEC) in the US. Nevertheless, we are keeping the fingers crossed for Crypto Fund AG and are hoping that the regulators in Switzerland will prove once again that they are bitcoin-friendly.