A&G, the top private bank in Spain, has launched a cryptocurrency investment fund, signaling increased adoption throughout Europe.
The fund’s brochure has already been filed with the National Securities Market Commission (CNMV), according to a Europress article. This investment product will be made available by A&G to interested clients.
A&G chose to respond to a spike in investor interest in exposure to cryptocurrencies. The bank thinks that investing in cryptocurrency assets might be safer and more effective with proper risk management and regulation.
A&G further stressed the relationships it has established with reputable financial institutions to ensure the security and compliance of the fund. The fund’s depositary will be CACEIS Bank, the joint asset servicing division of Crédit Agricole and Santander, and PwC (PricewaterhouseCoopers) will manage its financials.
According to A&G, the exact makeup of the fund is still up in the air. The bank stressed that the fund would only be exposed to cryptocurrencies through financial instruments linked to the tokens’ profitability, ranging from 50% to 100%.
Ethereum (ETH) and Bitcoin (BTC) will be the main topics of discussion. A portion of the money will also be used to purchase other well-known cryptocurrencies with adequate liquidity and trading volume.
A&G advises potential investors to consider a longer-term perspective because the fund might not be appropriate for those intending to withdraw their investments within four years.
The bank further highlighted the severe volatility, complexity, lack of transparency, custody issues, and concentration risk associated with cryptocurrencies.
Spain’s rising crypto landscape
The creation of A&G’s cryptocurrency investment fund coincides with renowned Spaniards expressing interest in cryptocurrencies. In March, a Spanish lawmaker left his position in parliament to work in the cryptocurrency sector.
The Bank of Spain registered Singapore-based cryptocurrency exchange Crypto.com as a virtual asset service provider (VASP) on July 23. The registration gives Crypto.com the right to offer goods and services to customers in Spain while abiding by stringent compliance rules that guarantee user security and protection.
Notably, the Bank of Spain approved a pilot program including issuing digital tokens pegged to the euro in January 2023. The project allows users to construct their own euro stablecoins on the Ethereum and Polygon blockchains, each of which is backed by actual euros. It is being spearheaded by licensed fintech payments startup MONEI.
