A&G, a prominent private bank in Spain, has announced the launch of a cryptocurrency investment fund, indicating a growing acceptance of digital assets in the country.
According to a report by Europa Press, A&G is preparing to introduce an investment fund after filing its brochure with the National Securities Market Commission (CNMV), the country’s regulatory body.
This venture represents the first-ever cryptocurrency fund in Spain.
A&G highlighted a significant interest from investors in cryptocurrency investments.
The bank further emphasized that such investments can be efficiently managed and controlled in terms of risk through more secure and well-regulated investment products.
A&G further emphasized the safety of funds managed by professionals who are under regulatory supervision, portraying this as a secure option for investors interested in cryptocurrencies.
In addition, CACEIS Bank will act as the depository for the fund while the auditing responsibilities will be handled by PricewaterhouseCoopers (PwC).
CACEIS Bank, a collaborative venture between the European banking giants Crédit Agricole and Santander, specializes in asset servicing.
Just a month ago, CACEIS received a cryptocurrency custody license from the French markets regulatory authority.
A&G announced that the precise make-up of the fund is yet to be decided.
However, the bank did mention that the fund is set to have a cryptocurrency exposure ranging between 50% and 100%, solely through financial instruments that are tied to the performance of tokens.
The fund will include both Bitcoin (BTC) and Ethereum (ETH) in its portfolio.
Additionally, it will have a minor stake in other current or future cryptocurrencies that demonstrate satisfactory levels of trading volume and liquidity.
New Spanish Crypto Fund: Adoption Rising?
The brochure released by A&G advises that their newly initiated fund might not be a fit for investors intending to withdraw their capital in less than a four-year period.
Nonetheless, the brochure also contains obligatory alerts from the CNMV.
The regulator has highlighted the fact that the fund engages in investments in financial instruments whose returns are connected to the performance of cryptocurrencies.
As per the regulator’s advice, the fund carries significant risk due to the inherent extreme volatility, complexity, lack of transparency, custody issues, and concentration risk associated with cryptocurrencies. These risks could potentially lead to a total loss of the investment.
In a related development, a high-profile Spanish MP announced in March that he was resigning from his parliamentary role to focus on a career in the crypto industry.
Furthermore, a tax company recently reported that 70% of Spanish crypto holders who filed tax declarations reported losses on their token investments in the fiscal year 2022.
