Investing in a crypto investment fund can be an interesting addition to a diversified investment portfolio. If you do not have the time or knowledge to determine in which way or in which crypto currency you want to invest, a crypto fund can take care of this.
What are cryptocoins?
Investing in a crypto investment fund A cryptocoin – also called cryptocurrencies, cryptocurrency or simply crypto – is a digital currency. Many people invest in bitcoins or ethereum. These are the best-known cryptocoins in which the most money is invested.
So it is not about physical money, but about a programming code based on blockchain technology. If you are interested in investing in cryptocurrencies, you can choose which crypto you want to invest in via a broker. Visit Renovato.io has enough information. Then you have to look for a place to buy it. A crypto fund will arrange this for you. Index investing in cryptocurrencies? Mercury Redstone offers a broadly diversified crypto portfolio based on MVIS’s Digital Assets 25 Index – the 25 largest and most liquid crypto assets.
Investing through crypto funds
If you are not able to do sufficient research into all crypto investments yourself, you can also opt for a crypto investment fund. Due to the popularity of cryptocurrencies, some Dutch crypto funds have also emerged in recent years. Below we discuss some well-known funds and the possibilities that a crypto investment fund offers.
Mercury RedstoneMercury Redstone supports a broadly diversified crypto portfolio based on index investing. You can board from 2,500 euros. The index portfolio tracks MVIS’s Digital Assets 25 Index, reflecting the performance of the 25 largest and most liquid crypto assets. Manually buying and selling yourself is not necessary and additional deposits or withdrawals are easy.
Investing in crypto fund Maven 11This fund expects that blockchain technology will have a major impact on the economy in the coming years and that more applications of crypto will appear soon. Via Maven11, investors who invest at least 100,000 euros in the fund can directly benefit from the built up portfolio. Maven11 buys well-known coins such as ethereum and bitcoin, but the fund sometimes also participates in early investment rounds of (new) coins and companies.
Crypto Index Fund
Investing in crypto fund Crypto Index FundIn 2017, the Crypto Index Fund was the first in the Netherlands to launch an index fund for cryptocurrencies. https://moveco.io/ has enough information. By investing in this fund you invest in the top 30 cryptocurrencies in terms of market value.
The minimum investment for investors with this fund is also a hundred thousand and in addition it charges a 4 percent annual fee and a one-time fee for entry or exit of 0.5%. These costs are therefore quite high, but according to the founders they are necessary for the market.
This fund follows an index strategy, similar to trackers or some ETFs. The founders themselves indicate that the market can shift very much and new players can dominate. With this investment strategy, your investment will automatically flow to the winning cryptocurrency.
Investing in crypto fund Blockchain TradersThis fund was founded by Michiel van der Steeg and Justin Kool, who gained a lot of experience in 2017 with trading crypto, participating in initial coin offerings and mining crypto. They beat the market by more than 30% in the same year and with that proceeds they decided to set up the BlockchainTraders fund.
The fund has a diversified investment policy. By responding quickly to developments within blockchain, it wants to continue to strategically outperform the market by at least 25% per year. It uses trading bots for automated trading of crypto. According to the fund, it therefore outperforms the market.
Here too, the minimum investment is one ton. In addition, as an investor you pay a one-off start-up costs of 845 euros excluding VAT. There are also a number of additional costs, such as a management fee of 0.4% per quarter. The performance fee is 15% of the positive return achieved.
Investing in crypto via the stock exchange
Cryptocurrencies have now also penetrated the stock exchange. You can trade in this via brokers such as Binck Bank or DEGIRO. A well-known player is VanEck, which has a Bitcoin ETN and Ethereum ETN listing on the Xetra exchange. An ETN (Exchange Traded Note) is an investment product that trades in underlying products for you. Similar to commodity market derivatives.
It is not directly a fund but rather a passive debt instrument that replicates the returns of the market by tracking an index of prices. The idea of ETNs is that the financial institution ultimately provides you with the return of a particular index.