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CSSF

Regulator approves first crypto asset manager



Azimut plans to launch the first fund under Luxembourg law to invest in cryptocurrencies and other digital assets Photo: Shutterstock

Azimut plans to launch the first fund under Luxembourg law to invest in cryptocurrencies and other digital assets Photo: Shutterstock

Financial sector regulator CSSF has authorised Azimut Investments to become the first asset management company in Luxembourg to indirectly manage investment strategies based on crypto assets.

Having gained the CSSF licence, the Italian asset manager plans to launch the AZ RAIF Digital Asset fund. This will be the first such fund under Luxembourg law and only the second in Europe to indirectly invest in assets like cryptocurrencies, digital assets, exchange-traded funds, funds and the equity of fintech or blockchain-linked companies, Azimut said in a statement.

“AZ RAIF Digital Assets will allow exposure to cryptocurrencies in a dynamic, diversified way and within an active risk management framework,” the asset manager said. “The portfolio will be managed to extract returns from an active allocation to sub-asset classes and will allow investors to participate in the full range of opportunities offered by Digital Assets without having to manage the technical and financial complexities typically associated with a new investment vehicle.”

While launched in Luxembourg, the fund will be managed by the group’s Singapore office and is not subject to CSSF prudential supervision.

“We have been approaching the world of virtual assets for some time, exploring their underlying technologies and potential, following a global approach of risk and opportunity management on which the AZ RAIF Digital Asset fund is also based,” said Giorgio Medda, co-CEO and global head of asset management for the group.

“The product initiative is aimed at long-term investment objectives over longer diversification horizons for our clients’ portfolios in an extremely dynamic market environment for this asset class,” he said.

Updated on 29 July 2021 at 12:10pm following a company update of its initial press release to specify that the authorisation granted relates to indirect investments and that the fund is not subject to CSSF prudential supervision.