Croatia’s financial supervisor Hanfa approved a bitcoin investment fund on Thursday, clearing the way for the first regulated, crypto alternative asset fund in the Balkan state.

Hanfa’s board of directors backed Griffon Asset Management’s plan to establish and manage the Passive Digital Asset fund. In the same decision, Hanfa also approved Croatian state-owned bank HPB to serve as the depository.

As described in Hanfa ruling, the passive fund invests exclusively in bitcoin. The initial investment period closes once total assets hit 1,000,000 HRK or 15 working days after the ruling, whichever comes first.

Investors can make their initial investment in cash or bitcoin, the Hanfa decision read. Griffon did not respond to a request for comment.

Griffon will use three separate blockchain explorers to calculate daily asset value, the ruling said. Every day, the explorers must return matching values before the Griffon can record the total.

“Also, access to and disposal of crypto assets requires multiple key signatures that are physically stored in separate secure locations, and the transfer of assets cannot take place without the approval of both the Company and the Depository with their keys,” the ruling said.

The bitcoin fund carries a 2.5% management fee. Griffon takes 3.5% from investors that exit in less than a year and 2.5% from investors who jump before two. It drops the exit fee after that. There is no performance fee.

Hanfa approved Griffon’s bid to manage assets in May 2019. Griffon’s website states it runs an “open ended alternative investment fund with a private offer to invest in crypto assets.”

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