By Oliver Smith on Tuesday 19 February 2019
Will a traded certificate persuade the sceptics?
Investing in crypto brings with it a host of challenges, not least the risk of backing a potentially highly-volatile token.
Last year Block Asset Management (BAM) launched what it said was a solution, the first crypto fund of funds to help professional investors back the crypto boom, but without the headache of managing their own portfolios of tokens.
A fund of funds bundles investments across several investment funds together, in order to let investors greater spread their risk, not just across assets, but across different funds and fund managers.
However, even a crypto fund of funds has challenges of its own—including the speed at which investors can both invest and cash out their investments.
This week BAM, which is based in Luxembourg, launched the first crypto tracker certificate on the Vienna Stock Exchange to solve that problem.
The publicly-traded certificate is linked to the performance of BAM’s fund of funds which it will, hopefully, mirror on the public market.
“Asset managers required a listed note or certificate for ease of purchase,” said Kevin Ballard, BAM’s cofounder and director.
”Also, in order to access Swiss Asset Managers, we required Swiss Fund representation. Via the tracker certificate we have broken down these barriers and provided the solution.”
BAM also this week hired a new partner and chief strategy officer, Daniel Vegue Domínguez, and chief operating officer Juan Carlos Serrano.
Time will tell whether this new certificate brings much-needed reassurance to BAM’s investors.
The fund’s underlying crypto fund net assets currently sit at $335,095 having fallen over 10% in December 2018 alone but, as fellow cofounder and director Manuel E. De Luque Muntaner puts it:
”Investors remain hesitant despite current market conditions offering, what many in the space see as a buying opportunity.”