By
Temitope Olatunji
April 26th, 2024
The fund will be audited independently by PwC, one of the world’s leading professional services organizations.
A&G, a prominent Spain-based financial entity focused on private banking, has announced its entry into the crypto market with the launch of the country’s first-ever crypto fund.
With €12.4 billion ($14 billion) in assets under management as of the end of 2022, A&G’s foray into the crypto market demonstrates the firm’s commitment to innovation and its recognition of the growing importance of digital assets in the global financial landscape.
The announcement, released through an official statement earlier this week, has sent ripples through the financial community in Spain and beyond. The new crypto fund, exclusively accessible to professional investors, aims to capitalize on the growing interest in crypto while providing a safe and regulated investment avenue for A&G’s esteemed clients.
Notably, A&G emphasizes that its crypto fund adheres to Spanish jurisprudence, providing a robust regulatory framework to protect investor interests and maintain transparency. This aspect is expected to instill a sense of trust among potential investors who may have been cautious about investing in crypto due to concerns about regulation and security.
Diego Fernandez Elices, Chief Investment Officer at A&G, commented on the launch, stating, “We consider it an optimal solution for any European professional investor who wants to approach the world of cryptocurrencies, without forgetting that it is a very high-risk fund.”
In an effort to boost investor confidence, A&G has appointed CACEIS, the asset servicing banking company of Crédit Agricole and Santander, as the crypto fund’s depositary. Furthermore, the fund will be audited independently by PwC, one of the world’s leading professional services organizations.
Beyond A&G: Crypto Development in Spain
Cryptocurrencies, particularly Bitcoin (BTC) and Ethereum (ETH), have garnered immense popularity over the past decade, attracting both retail and institutional investors seeking diversification and potential high returns. Despite this growing interest, the Spanish financial industry has been relatively cautious about embracing digital assets.
However, in recent years Spain has shown a growing interest in the development and regulation of crypto and blockchain technology. In 2022, the Bank of Spain started issuing licenses to providers of services for the exchange of virtual currency for fiat currency and the custody of digital wallets.
This approach aims to increase transparency and legitimacy in the cryptocurrency business while also improving consumer safety. Several well-known companies, including Bit2Me, Bitstamp, BVNK, Crypto.com, and Ripio, were among the first to obtain these licenses.
Furthermore, the Spanish Central Bank (Banco de España) made an announcement about its plans to investigate the establishment of a wholesale Central Bank Digital Currency (CBDC) project. This CBDC push is in line with the other Central Banks from the European Economic Area (EEA).
This project aimed to investigate the potential applications and benefits of a digital currency issued and backed by the central bank, specifically designed for use between financial institutions.