Former Bain Manager Launches $50 Million Bitcoin and Ethereum Fund

Some of the wealthiest families in Latin America now have access to a new way of investing, partly thanks to a former senior executive of the consulting firm Bain & Company.

Announced today, the recently created Crypto Asset Fund, co-founded by former CEO Bain Roberto Ponce Romay, helps increase the $ 50 million to buy cryptocircuits for family offices. Crypto Assets Fund (CAF) will invest directly in bitcoin, ether, zcash, ripple, litecoin and dash.

The first tranche of the fund, estimated at about $ 10 million, is in the closing stage and is expected to be announced by the end of this month.

In the interview, Romay explained that the purpose of the fund was twofold. First, it has been designed to give investors in some of the most volatile Latin American economies a new way to hedge their investments, and second, they have the opportunity to know about these potential future investments.

According to Romay, as investors in the fund become increasingly familiar with the crypto-asset class, CAF could possibly collect new funds that also include tokens sold as part of the initial offering of coins or coins. ICO.

"This fund is focused on investors," said Romay, who is now director of the investment banking boutique, Invermaster. "It's a simple strategy to give access."

Dissection of the fund

The co-founders of the fund, including Ripio bitcoin start-up vice-president, David Garcia, and ARG Capital partner Miguel Iribarne, increase the liquidity of accredited investors in Argentina, Costa Rica, Latin America.

The service is designed to give crypto-active investors exposure to bitcoine and ether without taking into account the additional risk of regulatory and tax compliance and storage. No fees are charged for the service, but 30% of the interest will be collected by the fund based on certain conditions.

At launch, funds should be held by Xapo, based in Switzerland, with over-the-counter commercial services provided by B2C2 OTC, an electronic market maker and a representative designated by the FCA in the United Kingdom. Dealer financing is provided by Silvergate Bank.

While investors who have accumulated a minimum of $ 2.5 million will be allowed to hold their funds for up to five years, most investors will have access to their 180 days after the halve reduction by 2020, When the reward at the Bitcoin mine will automatically be reduced.

Half of all initial funds collected will be invested in the bitcoin, the other half being divided among the remaining cryptocasses. But future funds could include new assets and other investors. "We are targeting mainly family offices in Latin America," Garcia said. "But there are other players interested in the fund because the fund's strategy is also what they are looking for."

An innovative wealth

While bitcoin and other cryptographies were originally advertised as new ways for the unbanked populations of developing countries to participate in the global economy, which has changed in recent years.

As early-use cases, including remittances, were mainly for workers seeking to send money to the home, the latter development shows how services are for the rich. CoinDesk first reported this push from family offices in the cryptocurrent space last March.

Now, based on the previous growth trajectories of CAF's crypto-assets, the fund indicates a minimum target return of 26% per year for three years with an "expected" target return of 71%.

But Garcia said that Latin American family investors are looking for more than just a way to make money. According to the nation, they also seek a way to guard against less stable fixed currencies.

He explained:

"Storing their savings in the local currency is not a smart option."