Demand for a legal investment fund?

[Mudda]

Hi there,

I have observed the market for crypto investment funds (either managed, passive, open or closed..) over the last half year.
There are some interesting projects, but they all seem to be a bit fishy:

Either the team is not known or if, they are incorporated in some exotic jurisdication in which itself they might be legal,
but most certainly they dont have any allowence from e.g. a European Union financial authority to offer their service in those countries.

So my question beeing: Would you invest in a totally legal investment funds which is based in the EU?

There does not seem to be, lets say a ETF, which just replicates an crypto index and makes investing easy 

[gentlemand]

Of course there'd be huge demand for it but we'd have to wait for regulators to approve one. The closest thing so far in Europe is XBT Provider which is an ETN.

[avikz]

Till date, I don't know about any other legal bitcoin investment fund apart from the CME group's future contract. I don't believe there are any other company is doing the same or have floated any investment fund based on crypto currency due to the complex or absent legislation. So if any company can start a legal investment fund that is fully managed in EU, it will fetch a billion dollar investment within the shortest period of time. Crypto currency market is very much un-regularized and a lot of scammers are trying get their hands wet here. So an EU based investment fund in crypto market which can accept international investment, can be a big success within the shortest possible time. But until the law is loud and clear about crypto currency, I doubt anything of that sort will be coming to our way soon.

[darkangel11]

I would put some cash into it if they were totally legal and offered good returns. There's always a chance they'll go bankrupt like many legal cryptocurrency projects before them, but I like to keep my eggs in a number of baskets. I'm pretty sure a demand for such thing will only be greater because people in general don't have time and nerves to play the market themselves. They'd prefer someone else to manage their money for them and the richer you are the more you want others to handle everything

[Shrinath]

What I feel is until the law is loud and clear about crypto currency, I doubt anything of that sort will be coming to our way soon. I don't know about any other legal bitcoin investment fund apart from the CME group's future contract. I don't believe there are any other company is doing the same or have floated any investment fund based on crypto currency due to the complex or absent legislation. So if any company can start a legal investment fund that is fully managed in EU, it will fetch a billion dollar investment within the shortest period of time. Crypto currency market is very much un-regularized and a lot of scammers are trying get their hands wet here. So an EU based investment fund in crypto market which can accept international investment, can be a big success within the shortest possible time.

[pawel7777]

What would be the benefit of investing in cryptos via the middle-man if one is savvy enough to do it himself? There's no tax benefit of doing that afaik. You wouldn't have to bother with keeping all your trade records - that's a good thing, but you'll have to pay management fees and lose easy access to your holdings, plus you'd have to trust 3rd party.

[xankor]

Is it meaningful to invest?

[gentlemand]

What would be the benefit of investing in cryptos via the middle-man if one is savvy enough to do it himself? There's no tax benefit of doing that afaik. You wouldn't have to bother with keeping all your trade records - that's a good thing, but you'll have to pay management fees and lose easy access to your holdings, plus you'd have to trust 3rd party.

If it's on existing investment platforms then you'll get a ton more people. Also more likely than not there will be tax benefits. Lots of countries have tax sheltered investment schemes that would require a wrapper.

[RodeoX]

The problem I have found with bitcoin investment instruments is that they are not going to be able to outperform bitcoin itself.

[Zackgeno96]

Yes, there will be a huge demand for such fund. There are many investors who wanted to invest into the cryptos but they don't have adequate knowledge about best coins and the risk factor involved. These funds will be helpful for such investors and it will also help to attract the new investors into the crypto market.

[gentlemand]

The problem I have found with bitcoin investment instruments is that they are not going to be able to outperform bitcoin itself.

As long as they're vanilla Bitcoin there's no issue. GBTC is plain weird and that's the only game in town for many people. When there's a straightforward one that holds BTC things will take off. I don't know how available the KNC miner ETN thing is but that's the closest thing at the moment, not that I'd go for it.

[marielbeckham]

There are the numerous disadvantages in such a case because of the complicated managing process. I mean it is extremely difficult to rely on some 3-rd party in order to implement all this. Still, my answer is "yes". I would do this if there will be no more attractive alternatives.

[Lieldoryn]

The problem I have found with bitcoin investment instruments is that they are not going to be able to outperform bitcoin itself.

And who will vouch for such a Fund? How will you react to the fact that such a Fund can also become a victim of fraud and ruin? I don't think it's possible to fully protect myself from scammers. Maybe in the future the success of ICO will be guaranteed only by the assets of previous successful projects. If the ICO team is successful, it will be the generator of ideas and there will be a queue of investors in such projects.

[crisanto01]

Let us see the possible things that it can offer, I would give a chance and let myself invest on it, for as long as I have their vision and platform, but for sure it will become profitable since almost all investors wanted to take risk if it is legal.

[palle11]

The legality of it confirms that it is safe to invest in. I don't put money in shady business if I'm warned ahead. I could get on with some legal actions if it turns out bad, I claim for damages or specific performance.