Iconiq Funds, a subsidiary of Germany-based Iconiq Holding, announced the launch of several digital asset index funds starting with the fourth quarter of this year. The asset manager plans to establish the passively-managed funds in order to give traders the chance to invest in diversified instruments and benefit from the growth of the cryptocurrency market via traditional investment channels like exchange-traded funds (ETFs) and exchange-traded notes (ETNs). The funds will cover top cryptocurrencies by market capitalization.
Iconiq, which earlier invested in the trading platform Robinhood, plans the first digital asset index fund to be a Maltese Professional Investor Fund (PIF). The Maltese regulator, Malta Financial Services Authority (MFSA), is currently reviewing the fund, which is expected to be launched by the end of this year. Next, Iconiq Funds will rely on its experience in the financial markets to establish crypto index ETFs and ETNs starting with the new year.
Maximilian Lautenschläger, the managing partner of the parent company Iconiq Holding, which is behind the decentralized venture capital group Iconiq Lab, said that these kinds of investment instruments are needed to bring new capital to the cryptocurrency market from the traditional markets.
“Iconiq Holding'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,”
Once the new funds are launched, the ICNQ token, which was meant to give users access to Iconiq Lab, will get new functions. The token will also be used as a voucher tool to pay within the ecosystem developed by Iconiq – something similar to Binance’s coin BNB.
Iconiq Holding CEO Patrick Lowry explained:
“ICNQ tokens can now be redeemed in our ecosystem for products and services provided by Iconiq Holding companies, including by our digital asset index funds to pay asset management fees to the fund manager, Iconiq Funds.”
Later, the company plans to list the token with the crypto exchange platform Gibraltar Blockchain Exchange.