Robin Ledoux, Quentin Werlé, Julie Bourgeois and Julien Wolff – Conducting Officers at 6 Monks (6M) (Photo: Vincent Flamion/Dix Septembre Gallery)

Robin Ledoux, Quentin Werlé, Julie Bourgeois and Julien Wolff – Conducting Officers at 6 Monks (6M)  (Photo: Vincent Flamion/Dix Septembre Gallery)

In the evolving landscape of Web3, institutional investors are emerging as key players. The dynamics of this growing ecosystem reveal that crypto assets represent opportunities but also challenges for the EU’s Fund Industry, where Luxembourg has tremendous business opportunities to explore.

Considering this growing appetite of asset managers for crypto assets exposures, the EU Alternative Investment Fund Industry has a key role the play.

Until recently, implementing a regulated fund dedicated to crypto assets within the EU was deemed impossible considering the absence of the relevant stakeholders, namely the AIFM whose role is central and mandatory. External AIFMs like 6 Monks (6M) are primed to institutionalize crypto assets in the EU, positioning this new type of investments alongside traditional asset classes like stocks, private equity or commodities.

AIFMs dedicated to crypto together with the other regulated or supervised actors (depositary and custodians) provide a regulated framework that meets institutional investors’ stringent compliance requirements. This regulatory oversight mitigates risks about fraud, market manipulation, and legal ambiguities, making crypto assets more appealing to risk-adverse institutional investors. Their participation often leads to improve market practices and governance, attracting even more institutional capital.

As a center of excellence for the alternative funds industry, Luxembourg is now a place of choice for funds dedicated to crypto assets strategies. Indeed, the Grand-Duchy has recently seen the emergence of 6 Monks (6M), as an authorized AIFM whose business model is based on serving crypto and private equity fund promotors, enabling them to benefit from the EU passport for marketing/distribution and attract worldwide institutional investors.

The market positioning and the scope of services delivered by 6 Monks (6M) bridge the gap between traditional finance and the crypto ecosystem, allowing the asset managers to focus on their fund raising and portfolio management activities, while 6M is handling the middle and back office which include Risk Management, Valuation, Compliance and Fund Administration.

The Luxembourg fund industry is experiencing a wave of innovation driven by forward-thinking firms. By embracing cutting-edge asset classes like crypto-assets and venture capital, Luxembourg is poised to set a new standard for investment management in the European Union, shaping the future of alternative investments.

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Contact:

, Conducting Officer, 6 Monks (6M)