A&G, Spain’s private bank has instigated a significant step in the crypto landscape through the introduction of the first local crypto hedge fund —Criptomonedas, F.I.L. Fusing technology with finance, this venture is overseen by Spain’s financial markets regulator, CNMV. This development is a sequel to the ever-growing interest in the crypto industry from the investor’s side, leading to heightened demand. A&G perceives this new fund as a safer and a more efficient alternative to buying spot crypto directly.
This innovative fund will be limited for use by professional investors and will employ the services of Crédit Agricole and Santander’s asset servicing arm, recognized as CACEIS, as its depository. As part of its credentials, CACEIS has recently acquired a license to provide crypto custody services within the European Union, which was issued by (AMF) earlier this year. In order to maintain high-level accountability and transparency, the fund will be audited by the ‘big four’ auditing and accounting giant, PwC.
As per Diego Fernández Elices, the General Director of Investments at A&G, the fund is ideal for professional investors seeking crypto exposure, while also reminding the potential investors that this high-rewards fund also carries very high risk. The creation of this kind of fund may be seen as a reflection of the growing mainstream adoption of cryptocurrencies, with A&G managing €12.4 billion ($14 billion) in assets till the end of last year.
The move by A&G toward a crypto hedge fund is indicative of a bigger shift in the financial world’s understanding and acceptance of cryptocurrency, exemplifying the intersection of traditional finance with the tech-laden world of digital currencies. However, the integration of both worlds is not without its hurdles. While the fund is designed to offer a safer and more efficient alternative to spot trading, it’s worth mentioning how the inherent volatile nature of cryptocurrency could present investors with a see-saw of highs and lows. As such, this stride into the cryptocurrency ecosystem is, for many, a journey into uncharted territory, holding promises of high rewards but conspicuous risks too.
Source: Cryptonews
