The SLP can be used to setup up a Bitcoin Fund as an Unregulated Alternative Investment Fund
An ICO (Initial Coin Offering) is a fundraising method, operating via the issue of digital assets exchangeable against cryptocurrencies during the start-up phase of a project.
Initial Coin Offering Process
The issuer prepares a White Paper which consists of a document in which the underlying project is explained by its promoter.
Components of an offer:
- Project details
- Project timelines
- Amount of capital required
- Tokens (financial instrument)
- Dividend to be paid per token to investors
The next stage is the marketing campaign in which the issuer will promote their project to reach the initial capital.
Buying /Selling of Token to investors through an exchange
There is 2 ways to release tokens on blockchain:
- Based on the initial investment made
- By releasing the tokens on a number of cryptocurrency exchanges in advance of the trading
BitCoin or Crypto Funds
With the rise of the crypto currencies, investment managers may create Alternative Investment Fund to invest or trade these currencies, grant loan to traders, invest in companies active in this sector, etc.
Such so-called Crypto Fund can be setup as an unregulated Special Limited Partnership within a couple of weeks and remain unregulated if their manager’s AUM remains below 100 000 000 Mio eur.
Such Funds can also invest in “Tokens”, participate in ICOs, invest in companies active in the Blockchain industry (private or public).