Cryptos Fund, a Quasi-ETF, Is Now Open to Investors
Cryptos Fund allows investors to gain exposure to Cryptocurrencies with reduced risk in a regulated environment.
Cryptos Fund is the brainchild of a team of leading academics, quants and security experts based in Zug, Switzerland. It is designed to passively track the CCI30 index (www.cci30.com), an indicator of cryptocurrencies valuations and the benchmark for the sector.
Carlo Scevola, one of the fund’s principals, says: “Cryptos Fund was initially created as a private investment vehicle. I first bought Bitcoin in 2011, and when its value became substantial I wanted to diversify into other cryptocurrencies with a rigorous scientific approach. There was no suitable option available, so I created my own fund.” Cryptos Fund is also a response to heavy investor demand: “It bridges the gap between the traditional financial system and the cryptocurrencies sector. Investors need to participate in the cryptocurrency market via a regulated entity, which didn’t exist until now.”
Cryptos Fund is the only regulated fund offering a passive index tracking investment strategy on cryptocurrencies and charging no performance fees.
The CCI30 index allows for the creation of a balanced portfolio that maximizes returns while minimizing risk and volatility. The fund replicates the CCI30 index passively by investing in the components of the index (the 30 cryptocurrencies with the largest market capitalization).
Participation in the fund requires a minimum investment of USD 100,000. The fund’s annual management fee, just 0.99%, and zero performance fee make it by far the least expensive fund in the sector.
“No single investor can realistically own multiple cryptocurrencies directly. It requires time and experience to buy 30 different cryptocurrencies and keep the portfolio balanced. There are also technical and security requirements that only a dedicated professional structure can meet,” says Scevola. “Through Cryptos Fund, anyone can gain exposure to the main cryptocurrencies while reducing the volatility of the investment.”
Running an index fund requires a variety of financial and quantitative skills, along with a world-class security operation. Three partners began Cryptos Fund and are responsible for its management:
- Igor Rivin, Professor of Mathematics at Temple University and Regius Professor at St. Andrews, one of the world’s most respected mathematicians. Recognized for his skills at the intersection of mathematics and finance; he is responsible for the research and theoretical underpinnings of Cryptos Fund.
- Carlo Scevola, esteemed provider of legal and financial advisory services, economist and investor; Scevola is responsible for the fund organization.
- Jeff Zorn, global security expert. Formerly the military aide to the U.S. president responsible for carrying the nuclear “football,” Zorn now advises governments and corporations on cybersecurity, threat identification and neutralization. He is responsible for all security aspects of the fund.
Baker Tilly, a full-service global accounting firm, is the fund’s appointed auditor; Trident Trust, one of the world’s top firms, is the independent administrator.
“Cryptocurrencies are not correlated with other asset classes,” professor Rivin says. “This makes Cryptos Fund the perfect vehicle for adding diversification to a portfolio. The fund can also be viewed as a safe vehicle for storing capital. Its low fees make it viable for those who want to keep their money outside the traditional banking system, while enjoying the benefits of a regulated entity and the high level of security provided by its structure.”
Operations started with a capital of $12m and institutional investors have already committed for further $100m.
Professional investors wishing to participate in Cryptos Fund can learn more at www.thecryptosfund.com.