Asset management firm TOBAM is launching a bitcoin mutual fund, which will be the first of its kind in Europe.
TOBAM Bitcoin Fund, an unregulated alternative investment fund, will allows qualified and institutional investors to back tokens in the sector. Through the vehicle, investors will be able to mitigate risk of loss and theft.
With the significant risks associated with cryptocurrency, the firm will leverage its research capabilities and technology to integrate risk control and ‘straight-through-processing investment systems.
This vehicle is available for worldwide investors on a private placement basis.
TOBAM business development head Christophe Roehri said, “Direct investment in Bitcoin can be operationally challenging, from dealing with the choice of the platform, to maintaining the proper security measures in terms of custody and to managing the changes made to the protocol – hard forks.
“Our goal is to take control of these operational challenges in order to facilitate access for qualified investors willing to gain exposure to Bitcoin. All of that under the format of a fund.”
Cryptocurrency companies have seen a colossal rise in funding over the past year, with 2017 seeing almost seven-times as much capital deployed than the whole of last year. The first three quarters have seen a total of $732.3m invested through 22 deals, compared last year nabbing $106.8m in 25 transactions.
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