On March 7, 2019 the multi-product financial asset management platform ITI Funds launched the ITI Funds® Crypto Index Fund. This aims to provide non-speculative indexed exposure to a new, rapidly growing asset class via direct investments in crypto assets. ITI Funds’ unique partnership with leading industry service providers means the Fund benefits from diversification, an insured custody solution, and secured and legally compliant framework. The Fund complies with Luxembourg law, and offers professional investors convenient access to the crypto asset class by purchasing the Fund’s shares.
The ITI Funds® Crypto Index Fund offers the widest diversification available within the European regulatory framework. It invests in cryptocurrencies from among the 30 most-capitalised crypto assets, including Bitcoin, Ethereum, XRP, Bitcoin Cash, Litecoin, ZCash, Stellar, and Ethereum Classic. To be included in the Fund’s investment universe, the assets must comply with a list of strict rules: admittance to listing on recognised and licensed exchanges, eligibility for insured cold storage and underlying liquidity.
To maximise investor convenience, the Fund follows the performance of ITI Funds Crypto Index (ticker: ITIFC), maintained and published by MV Index Solutions® (a VanEck Company). This approach makes the Fund similar to traditional Indexed Products and allows for minimal manager discretion. To maximise diversification the index caps constituents’ weights at 15% and applies quarterly rebalancing. The index methodology is publicly available on the MVIS website.
The ITI Funds® Crypto Index Fund is part of the ITI Funds® fund platform in Luxembourg, the world’s second-largest jurisdiction by volume of fund assets. This jurisdiction has been chosen due to its well-established legal regulation and investor convenience. The Fund uniquely combines an established European legal compliance and a cutting-edge technology from recognised service providers in Luxembourg and the US.
“We believe that the next step in the cryptocurrency market evolution will be an institutional investment inflow and that such inflow will only be possible with the new investment products with legally compliant infrastructure that is both transparent and familiar to institutional investors. As such, we have established the ITI Funds Crypto Platform infrastructure starting with the Index Fund. The platform’s principles are similar to those of the general fiat world. If you expect the crypto space to continue its bullish trend, then now may be the right time to invest” – Marat Krimskiy, Manager of the project, commented.