Iconiq Funds, the asset management wing of the firm Iconiq Holdings has announced the launch of a suite of cryptocurrency index funds beginning in the fourth quarter of the current year. Iconiq Holdings is a German firm responsible for Iconiq Labs, the acceleration program used for ICOs and token sales. Investing in digital currencies would be facilitated by traditional and government-backed financial moves, like Exchange Traded Notes (ETNs) and Exchange Trades Funds (ETFs).
The firm plans to launch the first such cryptocurrency index fund under the Government of Malta, dubbed to be a “Professional Investor Fund” (PIF). The Malta Financial Services Authority (MFSA), the regulatory body of Malta, is currently reviewing the move.
The firm maintains the “diversified exposure to the digital assets market” in an important selling point for this new suite of devices. An investment fund basically serves to cloud the complexities of cryptocurrencies from the participants and offered them investments only on a particular lot of tokens. The logic is that the investor would hope that if some of the tokens perform poorly, the profits made by the others would send up for it.
Iconiq Funds have said that the firm will provide its financial services only under the monitor of some state regulators – like the Maltese MFSA. They explained that many investors chose to remain conservative, and a certain lack of regulatory supervision was an important reason for them not getting enough exposure to cryptocurrencies.
Managing partner at Iconiq Holdings, Maximilian Lautenschläger, explained that ETFs and ETNs could indeed serve to rake in more capital for the crypto-industry from the traditional finance markets. He said in the announcement:
“Iconiq’s aim is to make ICOs and crypto investments accessible to institutional investors, family offices and retail investors. Only through such regulated vehicles can we open the doors for the trillions of capital from institutional markets to enter crypto.”
Iconiq Funds also has future plans of offering other finance-based services and instruments to serve the demands of traditional investors, such as crypto index ETFs and ETNs, later in 2019.