Hanfa, the Croatian financial regulator, has approved the Passive Digital Asset fund, making it the first regulated crypto investment fund in the country.
Approved on Thursday, the regulator has also appointed HPB, a Croatian state-owned bank, as the depository for the fund.
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The fund is open-ended and invests exclusively in Bitcoin. The investments in the fund remain open for a period of 15 days or once the total assets hit HRK 1 million (around $143,320), whichever comes first.
“The investment goal of the Fund is to enable investors’ exposure to bitcoin cryptocurrency, with a significant reduction of technical and other operating risks linked with individual holding of cryptocurrency, or cryptocurrency trading,” the regulator stated.
No performance fees for a reason?
Initial investments in the fund can be made using either Bitcoins or fiat.
The fund has been set up by Griffon Asset Management which initially received Hafna’s approval to manage assets in May last year.
For the crypto fund, there will be a management fee of 2.5 percent. The investors will be charged with 3.5 percent as an exit load for pulling out their money within a year and 2.5 percent for an exit within two years. However, there is no performance fee for the fund.
Bitcoin has made impressive returns over the years, which forced the major funds to jump into the arena to receive a piece.
Earlier this year, Hong Kong authorities approved the first crypto fund of the jurisdiction with an asset under management (AUM) of $100 million.
3iQ, a Canadian investment fund manager, also listed a Bitcoin on the Toronto Stock Exchange.