BITREAL Capital GmbH based out of Munich has recently got an approval for registration and market authorization from Germany’s financial watchdog – The German Federal Financial Supervisory Authority (BaFin) – for operating a digital currency and real estate hybrid fund.
This fund called BITREAL Real Estate Blockchain Opportunities Fund 1 (BREBCO 1) will be the first of its kind hybrid fund and is aiming at an equity volume of 40 million euro ($48.95 million). The fund has been designed for a wide spectrum of investors and the minimum investment volume being pegged at 500,000 euro ($612,000).
BREBCO 1 aims to invest in the Blockchain technology through digital tokens and coins while simultaneously investing in the AA core commercial real estate in the top 10 economic regions of Germany and will partly be financed by banks. This will help to reduce the investment risk associated with crypto while at the same time providing the potential for higher return.
BREBCO 1 fund all also be having flexible deposit options to attract crypto holders. The fund will provide an option for Bitcoin or Ethereum investment deposits along with the facility of direct euro transfers. The euro depositors will also get an option to withdraw their money either in fiat or digital currencies.
Boris Hardi, Managing Partner of BITREAL Capital GmbH said:
“Since summer of last year, questions of family offices and high net worth individuals as to how or in which virtual currencies, coins, and tokens can be sensibly invested in or how to take part in the blockchain technology market potential without the high volatility and risk of total loss were raised. Our answer is the BREBCO 1 fund, which is now officially registered in Germany by the BaFin.”
Earlier this year in February, BaFin clarified all the obligations of ICOs having received a lot many inquiries about its legal status.