Do you want to set up a Crypto Investment Fund in Luxembourg?
Crypto Investment Funds are hedge funds investing in the cryptographically secured assets.
The firm’s mandate is to invest digital assets and thus generate high profit for investors, although the cryptocurrency in which a hedge fund invests is at the discretion of the fund manager.
The sub-funds may invest opportunistically across a selected number of assets, such as Initial Coin Offerings (ICOs) through tokens/coins (or other crowd funding mechanisms), Pre-ICOs through tokens/coins of blockchain projects offered before their official crowdfunding (ICO) commences, cryptocurrencies and post-ICO tokens/coins (traded after the completion of the ICO stage), long or short futures positions on available cryptocurrencies/tokens/coins, long or short positions on available cryptocurrencies/tokens/coins through structured notes, or Contracts for Difference (CFDs), shares of companies which have direct or indirect exposure on blockchain projects, funds, Funds of Funds (FoF), or other Undertakings for Collective Investment (UCIs) or Exchange Traded Funds (ETFs) which have direct exposure on blockchain projects, OTC currency Forward contracts (used for hedging currency risk or for speculative purposes), Money Market Funds, short-term government bonds, treasury bills and other cash equivalents. The issues that arise while setting up the Crypto Investment Fund is finding crypto-friendly jurisdiction, feasibility of being internally managed, administration of the Fund, regulated as Alternative Investment Fund (AIF) or unregulated, the need for depositary agent, custodian, auditor, register and transfer agent, limitation on the number of Investors and type of Investors it would be open for.
Our Law Firm is at the forefront of technology development and underlying cryptocurrency legal and regulatory framework and advice on all aspects of Crypto Investment Fund formation and ongoing operations:
If applicable, drafting of the license request to the Luxembourg Commission de Surveillance du Secteur Financier with respect to the Investment Structure and discussions with the CSSF to get their approval in order to be registered with CSSF and undertaking the respective “heavy” reporting and filing all the other documents with the regulator;