Gemini, the leading US-based cryptocurrency exchange and custodian service provider, has announced to provide custodian services (and also serve as a trade execution partner) for the upcoming Bitcoin fund issued by one of the top Brazilian investment banks BTG Pactual.
According to the contours of the agreement, two of Gemini’s subsidiary companies, namely Gemini Custody – Gemini Fund Solutions, will be providing customized services for the new Bitcoin fund, which is named the Bitcoin 20 Multi-Market Investment Fund. With these two subsidiary companies, the parent company Gemini provides customized cryptocurrency services to several traditional financial institutions, FinTech platforms, and fund managers worldwide.
This is the first fund launched by any Brazilian investment bank to offer exposure to Bitcoins. However, this is not the first time BTG Pactual has been targeting innovations in the cryptocurrency sector; the firm had previously launched a real estate-backed security token back in 2019.
The Bitcoin 20 Multi-Market Investment Fund invests a total of 20% of its AUM (assets under management) into Bitcoin, with Gemini entrusted with the safety and security of storing the coins. Of the remaining, the fund invests 55% of its AUM into treasury bonds, then 20% into bank deposit certificates, and the remaining 5% into repo operations.
The bank’s main focus is to democratize Bitcoin investment through a cryptocurrency product that is accessible to investors in terms of cost. Therefore, the Bitcoin fund is created to empower each individual by increasing their access to better investment opportunities. Accordingly, all of the registered BTG Pactual’s customers will be able to access the newly launched Bitcoin fund, with a minimum investment of 1 Brazilian Real, which is around $0.18, and an annual administrative fee of 0.5%.
To bring more and more investors into the crypto market, the bank has also launched an initiative to educate investors about cryptocurrencies, how the market works, the risks associated with them, etc. There will be a video series with 3 episodes narrating the history of Bitcoin, how it evolved over the years, how to invest in it, how the technology behind it (blockchain) works and the technology adoption curve stages Bitcoin is in now.