Watchdog BaFin approves first asset-backed cryptocurrency fund

Given the hype surrounding blockchain technology and its most visible product Bitcoin, it was just a question of time until the first hybrid cryptocurrency and real estate fund came on the market. In fact, we discussed this very startup half a year ago with the company's founder, Boris Hardi, and the company, BITREAL Capital GmbH, has made big strides since.

The Munich-based BITREAL has just been granted marketing authorization and registration by the German Federal Financial Supervisory Authority (BaFin) for its first cryptocurrency and real estate hybrid fund, BREBCO I (BITREAL Real Estate Blockchain Opportunities Fund I).

This is a significant step on the path to recognition and credibility in the cryptocurrency space, which has been going through a rocky path of late but has been recovering somewhat after the heady heights of pre-Christmas.

BREBCO 1 plans to invest in Blockchain technology through established tokens and coins as well as AA-rated core commercial real estate, partly financed by bank loans, across Germany's major industrial and urban centres. It is targeting a 15% return annually over a seven-year lifetime, and on its website says it is aiming for an equity volume of €40m.

To entice cryptocurrencies to invest in the fund, BREBCO I allows investors to deposit Bitcoin and Ethereum in addition to non-virtual currencies such as the traditional Euro, with investors also having the option of withdrawing their equity in fiat or listed digital currencies. The minimum investment volume for BREBCO I is €500,000, so is aimed squarely at the semi-professional to institutional investor.

According to CEO and founder Boris Hardi, BREBCO provides the answer to "how, or in which virtual currencies, coins, and tokens can be sensibly invested in or how to take part in the blockchain technology market potential without the high volatility and risk of total loss.”