Hansainvest, a German financial services company with €55 billion in assets under management, has made a groundbreaking move by adding cryptocurrency to its Wealthgate Multi Asset fund. This is the first time a fund of its kind in Europe has included exposure to digital assets, marking a significant milestone in the growing trend of cryptocurrency adoption.
The Wealthgate Multi-Asset Fund
Hansainvest, a large European financial services firm with assets under management amounting to €55 billion, has expanded its investment portfolio to include cryptocurrency according to a report by Trustnodes. The company’s Wealthgate Multi Asset Fund, a diversified global fund that invests in a wide range of financial instruments such as shares, bonds, money market instruments, certificates, funds, and time deposits, has been updated to include the BIT Global Crypto Leaders fund.
The fund allocation of the firm to the crypto market was reflected in the annual report it filed to Germany’s Securities and Exchanges Commission last month.
BIT Global Crypto Leaders Fund
The BIT Global Crypto Leaders fund was launched in June 2021 and invests in crypto-related companies and assets. As of August 2022, the fund managed by BIT Capital GmbH included €1.5 million in Ethereum, €700,000 in Binance coin, €200,000 in Polygon, and €100,000 in the FTX token based on the source. Although the February update did not crunch the numbers down, 5% of the fund’s holdings were reportedly in ETH, with BIT Capital managing €28.8 million in the crypto fund.
Wealthgate’s Exposure to the BIT Global Crypto Fund
Wealthgate’s exposure to the BIT Global Crypto fund is currently minuscule, at just €76,000 out of €30 million. Nevertheless, this move is a significant leap towards mainstream cryptocurrency adoption in Europe.
The BIT Global Crypto Leaders fund represents a new and developing trend in funds that focus on global investments. These funds tend to be the most diversified, aiming to track global growth, making them preferred by passive investors like teachers, lawyers, or doctors who want passive exposure to the market.
Other Notable Investment Funds Navigating the Crypto Space
While the current level of cryptocurrency exposure in passive investment funds is still far from the 1% recommended by numerous academic studies, or the 10% suggested by others, it is an indication that the trend is growing. The recent investment decision of Hansainvest follows the likes of big companies like BlackRock and Morgan Stanley Europe Opportunity Fund.
Blackrock, a US-based firm with trillions in assets under management, has also added Bitcoin to its Global Allocation Fund. Meanwhile, investors in Morgan Stanley Europe Opportunity Fund now have exposure to Bitcoin through GBTC as the fund bought $3.6 million worth of it.
Even considerably less popular investment funds such as the Emerald Finance & Banking Innovation Fund and Saba Capital Income & Opportunities Fund have also included Bitcoin in their portfolio. This shows that there is still significant potential for growth as more investors are slowly adding crypto assets to their investment pool.
Final Thoughts
Although the cryptocurrency exposure of passive investment funds is relatively minimal at the moment, it is viewed by industry experts as an emerging trend with significant growth potential. As people become more at ease with cryptocurrencies, it is expected that they will become more prevalent in various investment portfolios.
Giancarlo is an economist and researcher by profession. Prior to his addition to Blockzeit’s dynamic team, he was handling several crypto projects for both the government and private sectors as a Project Manager for a consultancy firm.
