I discussed already a potential cryptocurrency (CC) fund with Stefan Lindemann, CEO of LGT Fund Management in Liechtenstein (https://www.lgt.li/en/private-banking/services-and-solutions/private-label-funds/). General result: it is possible to set up a CC AIF Fund in Liechtenstein. Stefan himself doesn’t know any other CC AIF fund in Europe yet. Some facts for such a fund:
Set-up Cost: about 30,000- 50,000 CHF
Set-up Time: about 6 months
Prospectus: would be written by LGT with input from the fund initiator
Legal structure AIF in the legal form of a collective unit trusteeship in accordance with the Law of 19 December 2012 on AIF Managers (AIFMG), supplemented by the relevant provisions of the Persons and Companies Act (PGR).
Type of fund either private currency or digital asset fund
or a private equity fund 100% holding a CC trading firm; tbd.
IMPORTANT: in case of PC or DA fund detailed description and location of CC unit/coin storage (whether hot/cold storage and/or multi-sig wallet). Probably Liechtenstein must be main location, next to other locations in case of multi-sig wallet; tbd. – must be finally approved from Liechtenstein Financial Market Authority (FMA)
Country of incorporation Principality of Liechtenstein
Currency of account Tbd.
Asset manager must be provided by the fund initiator and must be educated in CC trading; can be also 2 persons
Administration LGT Financial Services AG, Liechtenstein
Depositary LGT Bank AG, Liechtenstein
Auditors Tbd., e.g. one of the big 4 e.g. PWC
Competent supervisory authority Liechtenstein Financial Market Authority (FMA)
Maintenance register of unitholders LGT Bank AG, Liechtenstein
Duration of the AIF unlimited
Minimum investment 1 unit , size tbd. (e.g. 1000 or 50,000 or other $, € or other)
Denomination With 3 decimal places
Initial issue price tbd.
Initial subscription date tbd.
Max. subscription fee e.g. 5%
Max. redemption fee tbd., recomm. none
Max. management fee ?? % p.a.; customized, suggested base fee and performance fee
Performance fee with high watermark and hurdle rate (classical)
Fee reduction with growing placement size
Operations fee Tbd.
Initial value date tbd.
Application of income Reinvesting (accumulation)
End of financial year e.g. As at 31 December in each case
End of first business year tbd.
Net Asset Value (NAV) day tbd. in case of PC or DA fund can be daily monthly or even yearly
Valuation frequency tbd. in case of PC or DA fund can be hourly, daily or even monthly
Issue/redemption date Each NAV day
Issuance and redemption value date: 3 bank business days after the NAV day
Cut-off time for unit trading tbd., e.g. Day before the NAV day at or before 2:00 p.m. (CET)
• Tbd. countries for fund distribution and marketing permission
• Tbd. fund distributors/placement agents
BUT, as I said there are severe restrictions for AIF (unit) distribution to US citizens:
E.g. the units may not be offered, sold or otherwise transferred in the United States nor to or for the account of US persons (within the meaning of the Act of 1933). Subsequent transfers of units within the United States or to US persons are also not permissible…. Moreover, units of the AIF may not be offered, sold or delivered to citizens or residents of the USA, to other individuals or legal persons whose income and/or earnings are subject to US income tax irrespective of their source, to financial institutions who do not subject themselves to the provisions of the FATCA.