ITI Funds company raised $5 million from French investment company Mantra Investment Partners, Russian company Da Vinci Capital and other investors. The raised funds will be used for new products, including the crypto-based exchange-traded fund (ETF).
Founded in 2015, ITI Funds has launched about ten funds, including hedge funds and exchange traded funds, for three years. At the end of the year, ITI Funds will launch a cryptocurrency ETF for institutional investors on the Luxembourg stock exchange (LuxSE). The portfolio of the new fund will include nine or more cryptocurrencies, the decision on its composition will be made by the investment Committee.
Currently the cryptocurrency market capitalization sees decline. Last week, Bitcoin began to lose sharply in price, followed by other cryptocurrencies. At press time, BTC is trading at $4 602,00 (-14,55%). All cryptocurrencies from the top 100, except USD Coin ($1,02 (0,46%)), are in the red. The total market capitalization is $144 770 479 182.
Vadim Merkulov, senior analyst at investment company Freedom Finance, believes that after a major drop in the crypto market, it will be difficult to find institutional investors who want to buy the ETF, since “institutional investors interested in cryptocurrency have already invested in various projects through ICO”.
«They will wait for a few years until their investments pay off, and will not enter new projects, so very low liquidity should be expected»,— the expert says. According to his forecasts, such an ETF may become relevant not earlier than in a year and a half.