Spanish Bank A&G Launches Crypto Investment Fund -TGN

Leading Spanish private bank A&G has launched a range of crypto investment funds, in a sign that adoption continues to soar in the European nation.

Europe press reported that A&G will launch a mutual fund product upon registration of the fund brochure with the regulatory National Securities Market Commission (CNMV).

The fund will be the first of its kind in Spain.

The bank said investors had shown “great interest” in crypto investments.

A&G said crypto investment “can be channeled with more efficient risk management and control, through investment products that are more secure and better regulated.”

The bank also said funds involving “supervised professionals” represent a safe bet for crypto-enthusiastic investors.

Another bank, CACEIS, will act as the fund’s custodian, while PwC (PricewaterhouseCoopers) will act as the accountant.

CACEIS Bank is the joint asset management arm of European banking powerhouses Crédit Agricole and Santander.

Last month, CACEIS was awarded a crypto custody license by the French market regulator.

A&G said the exact composition of the fund had not yet been determined.

But the bank said the fund will have “between 50% and 100% exposure to cryptocurrencies solely through financial instruments whose profitability is tied 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 increasing?

The brochure notes that A&G’s new fund “may not be suitable for investors who intend to withdraw their money within less than four years”.

However, the brochure also contains mandatory warnings from the CNMV.

The regulator notes that the fund covers “investments in financial instruments whose profitability is linked to cryptocurrencies”.

This, according to the regulator, “carries very high risks due to the extreme volatility, complexity, lack of transparency, custody and concentration risks of cryptocurrencies, which can lead to the total loss of (your) investment.”

In March, a prominent Spanish MP said he was stepping down from his role in parliament to pursue a crypto-related career.

And earlier this month, a tax office claimed that 70% of Spanish crypto owners who filed tax returns had incurred losses on their token investments in FY2022.