Making cryptocurrency more accessible to people all over the world is still a challenge. A new investment fund has launched which focuses exclusively on cryptocurrency. Bain & Company is the entity responsible for launching Crypto Assets Fund in Latin America. This project gives wealthy individuals another way to diversify their investment portfolio. A total of US$50m will be raised to make this project come true.
It is not the first time we see companies launch a cryptocurrency fund. Bain & Company are not setting any precedents in this regard by any means. However, they are among the first to make such an investment opportunity available to Latin Americans. Even though it is only accessible to the wealthy, it is an interesting project regardless. The bigger question is whether or not they can raise US$50m to officially launch this fund.
Popular Cryptocurrencies Make Up the Crypto Assets Fund
Crypto Assets Fund, as this offering will be called, aims to invest in many major cryptocurrencies. The list includes Bitcoin, Litecoin, XRP, and ZCash, among others. All of these currencies have a bright future ahead, by the look of things. Other currencies supported include Ether and Dash. It is expected the first “milestone” for this project will be reached in the next few weeks. With US$10m in funding nearly secured, things are looking quite good already.
Giving Latin American investors access to cryptocurrency is an intriguing idea. Most of the countries in those regions have very unstable economies. Solving those problems will not happen overnight. Introducing investors to cryptocurrency and using it to provide alternative investment opportunities will be an interesting experiment. After all, there is still a lot of misinformation regarding cryptocurrency these days.
It appears Xapo will be responsible for holding the funds. That is a rather interesting choice, to say the least. New investors will need to put up at least US$2.5m to become part of the Crypto Assets Fund. If all things go according to plan, the fund will return 26% per year. That is quite an ambitious goal, but it is not impossible to achieve. All major cryptocurrencies are appreciating in value over the past year. If that trend continues, 26% returns may be rather conservative.