Actively managed crypto certificates have gained popularity. iMaps now issued its Crypto Alpha Strategy ETI in cooperation with Zurich-based Belvoir Capital. The goal is to reduce crypto volatility and decrease the correlation with Bitcoin.
iMaps ETI plc, the Liechtenstein-based white label issuer of Actively Managed Certificates and Exchange Traded Instruments, launched the Crypto Alpha Strategy ETI (ISIN: DE000A3GQF18) last week. It’s an actively managed certificate that has been admitted for trading on the Stuttgart Stock Exchange.
iMaps issued the certificate in cooperation with Zurich-based Belvoir Capital AG. It is based on a basket of different cryptocurrencies. The active management includes the trading of futures in the respective cryptocurrencies via AI-supported software systems, whereas all trades are executed automatically. The goal is to outperform the broader market and achieve lower volatility.
Another goal is to achieve a low correlation with Bitcoin. In the cryptocurrency asset class, most assets are heavily correlated with Bitcoin. That increases the portfolio risk because if Bitcoin drops in price, most Altcoins will drop as well. iMaps goal is to reduce that risk through active trading strategies.
Steffen Bauke, CEO of Belvoir Capital AG, says: “After more than twelve months of testing and hard work, we have jointly succeeded in bringing a product onto the market that combines the old investment world with the new crypto world. Specifically, the combination of crypto investments with a market-neutral, risk-controlled investment approach is ideal for those investors who still seem alien to the crypto world. “
Liechtenstein the place to be for crypto issuers
Actively managed certificates have recently become more popular. As the cryptocurrency market is hugely volatile, investors are looking to get exposure to the asset class without taking on excess risks. Active management is one way to benefit from cryptocurrency returns while applying risk management strategies that limit the downside risks.
„We are pleased that our range of Actively Managed Certificates has now been expanded to include actively managed cryptocurrency investment strategies. We expect to issue numerous Actively Managed Certificates on digital assets for asset managers on our platform in the coming months,“ said Andreas Woelfl , Founder and Chairman of the Board of Directors of iMaps ETI AG.
The certificate was issued under an approved base prospectus for Exchange Traded Instruments in the form of derivative securities. That’s why iMaps Actively Managed Certificates come with a public offering.
Liechtenstein has become an attractive place for such issuances. The newly introduced legislation, the so-called Blockchain Act, has improved legal certainty for issuers of blockchain-based securities. As Liechtenstein is part of the European Economic Area (EEA) – on the contrary to Switzerland – Liechtenstein-approved securities prospectuses can more easily be passported to other European countries. That means Liechtenstein-approved issuers may sell their securities across the entire continent.