At the Hessian asset management company Plutos, customers can now invest in crypto currencies. The company takes over the management.
The asset management company Plutos is now also integrating cryptocurrencies into its services. The company from Frankfurt am Main recently announced this in a Press release. Customers with liquid assets of 500,000 euros or more can choose from a pool of over 30 crypto currencies, including Bitcoin, Ethereum, Litecoin or Polkadot.
The assets are managed by Frankfurt Asset Management. The Scheich and von der Heydt banks are also involved in the project. The latter takes on the role of finance commissioner and takes care of the fiduciary custody. The running costs consist of a custody fee of 0.35 percent and an administration fee of between 1.00 and 1.25 percent. All parties are regulated by BaFin.
According to Plutos, the step towards including cryptocurrencies in the asset management service resulted from high demand from clients. The company informed BTC-ECHO:
In the last few months we have noticed that our private customers are very interested in the topic of cryptocurrencies. This is actively addressed by our clients in almost every customer conversation. Furthermore, we assume that interest in the new asset class will increase in the future, as the topics of blockchain and cryptocurrencies are now fully established in the classic media and thus affect almost our entire customer base.
Plutos Vermögensverwaltung AG towards BTC-ECHO
Managing director Kai Heinrich sees it that way too.
Cryptocurrencies have become an integral part of the financial world and will play an important role in optimizing return and risk in portfolios in the future
Pluto’s managing director Kai Heinrich
“Regulations for cryptocurrencies appropriate”
The fact that the crypto space is gaining more and more attention in the conventional financial sector is also due to the legal framework that is currently being created around the world. It is mainly about KYC and AML guidelines, but also about taxes. We are currently satisfied with the current set of rules, says Plutos.
Currently, the use of crypto currencies, especially bitcoin, as a substitute currency is compliant with the rules, provided that the parties involved are not institutional participants. Commercial participants: currently have to apply for a permit so that they can conduct crypto custody transactions. We consider the regulatory environment to be appropriate, although the legislature will certainly make some changes in the future.
Plutos Vermögensverwaltung AG towards BTC-ECHO
Nevertheless, there is still a lot of catching up to do, especially when it comes to tax issues, according to asset management. The fact that purchases and sales of cryptocurrencies often go through a single wallet makes it difficult to understand the one-year holding period. However, investors can take active countermeasures here. There are already some tracking tools on the market that can be used to precisely document trades.