Leading Spanish private bank A&G has launched a crypto investment fund offering, in a sign that adoption continues to rise in the European nation.
Europe Press reported that A&G will launch an investment fund product after registering the fund’s prospectus with the National Securities Market Commission (CNMV).
The fund will be the first of its kind in Spain.
The bank said that investors had expressed “great interest” in investing in cryptocurrencies.
A&G said that crypto investing “can be channeled with more efficient risk management and control, through investment products that are safer and better regulated.”
The bank also said that the funds involving “professionals subject to supervision” represented a safe option for enthusiastic cryptocurrency investors.
Another bank, CACEIS, will act as depositary for the fund, while PwC (PricewaterhouseCoopers) will act as its auditor.
CACEIS Bank is the joint asset services arm of European banking powerhouses Crédit Agricole and Santander.
Last month, the French markets regulator granted CACEIS a crypto custody license.
A&G said the exact composition of the fund had not yet been determined.
But the bank said that the fund “will have between 50% and 100% exposure to cryptocurrencies, exclusively through financial instruments whose profitability is linked to [tokens].”
The fund will have exposure to both Bitcoin (BTC) and Ethereum (ETH).
It will also have “minority” exposure to “other existing or future cryptocurrencies that have satisfactory levels of volume and liquidity.”
New Spanish Crypto Fund: Adoption on the Rise?
The prospectus notes that A&G’s new fund “may not be suitable for investors who plan to withdraw their money in less than four years.”
However, the brochure also includes mandatory warnings from the CNMV.
The regulator notes that the fund involves “investments in financial instruments whose profitability is linked to cryptocurrencies.”
This implies, according to the regulator, “very high levels of risk due to the extreme volatility, complexity, lack of transparency, custody and concentration risk of cryptocurrencies, which can lead to the total loss of [your] investment.”
In March, a prominent Spanish parliamentarian said he would be leaving his position in parliament to pursue a cryptocurrency-related career.
And earlier this month, a tax firm claimed that 70% of Spanish crypto holders filing tax returns had experienced losses on their token investments in tax year 2022.
