German Bank Pushing Ahead with Launch of its Cryptocurrency Fund

Bob Coiney

December 8, 2020

Hauck & Aufhäuser, which is Germany’s oldest bank, is pushing ahead with the launch of its cryptocurrency fund along with Kapilendo.

A news article posted on Dailyhodl said that Hauck & Aufhäuser, which is a German bank, wants to launch a cryptocurrency fund through Hauck & Aufhäuser Innovative Capital (HAIC) that is the digital assets arm next year. 

According to Fundview, a news report has claimed that Hauck & Aufhäuser has partnered with Kapilendo, a Berlin-based fintech company, for its cryptocurrency fund. The HAIC Digital Asset Fund will concentrate on three crypto-assets, including Bitcoin (BTC) and Stellar (XLM).

The German media has said that Ethereum (ETH) too will be included and the funds will be used as a passive investment strategy. Harald Schendera, who is the owner of Schendera Internet Services sent a tweet on this development. 

Michael Bentlage who is the chairman of Hauck & Aufhäuser Privatbankiers said that it is a good sign that indicates the country is moving ahead with its blockchain plans. They want to leap into the crypto market through the usage of cryptocurrencies. 

Bentlage added that according to the market forecast, there is a growing demand for fund products. They want to focus on digital assets so that traders and users are able to set the right course at the front itself. 

This will give their clients access to innovative assets. It is to be noted that in the month of September, the bank was able to secure a license for HAIC. This was received from the Federal Financial Supervisory Authority that is also called BaFin. 

The BaFin had classified Bitcoin as legal in use in Germany. Besides, they said that cryptocurrency could be used as a legal, financial instrument. He added the Bitcoins are used in the country as something that is not guaranteed.

The cryptocurrency is not issued by any bank or public body; hence traders and users in the country may not be confident of investing in it. However, it can be transmitted legally without any issues or problems between any parties through electronic mediums.