Spanish Bank A&G Launches Crypto Investment Fund

A 3D map of Spain, decorated in the colors of the Spanish national flag, with a stack of metal tokens meant to represent bitcoin.
Source: AlexLMX/Adobe

Major Spanish private bank A&G has launched a crypto investment fund offering, a sign that adoption continues to grow in the European nation.

Europa Press reported that A&G will launch an investment fund product after registering the fund’s brochure with the regulator National Securities Market Commission (CNMV).

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

The bank said that investors have expressed “great interest” in crypto investments.

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

The bank also said that funds where “professionals are involved under supervision” represent a safer option for crypto-curious investors.

Another bank, CACEIS, will act as the depository of the fund, while PwC (PricewaterhouseCoopers) will act as its auditor.

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

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

A graph showing bitcoin prices versus the euro over the past year.
Bitcoin price against the euro over the past year. (Source: XE.com)

A&G said the exact composition of the fund is yet to be determined.

But the bank said the fund would have “exposure between 50% and 100% to cryptocurrencies, exclusively through financial instruments whose profitability is linked 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 a satisfactory level of volume and liquidity.”

A graph showing the Euro versus Ethereum prices over the past year.
Ethereum price against the Euro over the past year. (Source: XE.com)

New Spanish Crypto Fund: Is Adoption Growing?

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

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

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

According to the regulator, this involves “a very high degree of risk due to the extreme volatility, complexity, lack of transparency, custody and concentration risk of cryptocurrencies, which can lead to a total loss of (your) investment.”

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

And earlier this month, a tax firm claimed that 70% of Spanish crypto holders who filed tax declarations had experienced losses on their token investments in fiscal year 2022.

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