A German Financial Group, Iconiq Holdings, whose asset management arm is Iconiq Funds, which doubles as the team behind ICO and token sale accelerator program Iconiq Lab, will be launching a set of virtual asset index funds scheduled to begin in the fourth quarter of 2018. This announcement was recently made by the company as both institutional and retail investors will be granted access to invest through conventional and regulated financial means such as Exchange-Traded Funds (ETF) and Exchange-Traded Notes (ETNs).
The First virtual asset index funds are scheduled to be launched under Maltese jurisdiction as a Professional Investor Fund (PIF). This proposed launch is currently under regulatory review by the Malta Financial Service Authority (MFSA) and has to be approved once the review is complete.
The company reportedly claims that the initiative is hinged on having a “diversified exposure to the digital assets market” as an effective selling point for this new series of innovation. An investment fund essentially keeps the complications of the virtual currency from its participant, thereby offering participation in a selected group of tokens. This will reduce risk as investors will expect that when some token groups don’t perform well, the growth of others will make up for the loss of the former.
The Company, Iconiq Funds, has further stated that it will offer financial products under adequate oversight presence of the government regulators such as; MFSA for Malta. The team further analyzes that the lack of regulatory oversight has been a factor keeping conservative investors away from investing in virtual assets.
A managing partner in Iconiq Holding, Maximilian Lautenschläger expressed his optimism stating that the platform could help bring new capital to the virtual currency world and make them bid farewell to the traditional financial market, he poignantly said that based on the announcement;
“Iconiq’s aim is to make ICOs and crypto investments accessible to institutional investors, family offices and retail investors. Only through such regulated vehicles can we open the doors for the trillions of capital from institutional markets to enter crypto.”
The company has also revealed that it has some plans in stock for the future which includes a project of offering other financial products which is fit for the conventional investors’ demands such as Crypto index exchange-traded funds (ETFs) and notes (ETNs) sometimes next year.
The Virtual Asset Management Token
The Iconiq Funds boastfully stated that the firm is not just a traditional asset management firm that started trading cryptocurrencies but, the company is a fragment of a more substantial body which is a community-driven ecosystem that Iconiq Holdings has built around its own token, ICNQ which was initially released by Iconiq Lab. The ICNQ token functions as a “decentralized VC club membership instrument.”
Based on the information released by the Iconiq Funds, its titleholders receive access of initial sale of companies graduating Iconic Lab’s token sale accelerator program. The tokens can also function as a medium of payment as it doubles as a voucher instrument for payments within the asset management ecosystem which was duly created by Iconiq. The CEO of Iconiq Holdings, Patrick Lowry, stated that;
“We have successfully positioned the ICNQ token as the token for digital asset management…ICNQ tokens can now be redeemed in our ecosystem for products and services provided by Iconiq Holding companies, including by our digital asset index funds to pay asset management fees to the fund manager, Iconiq Funds. We are excited to add this new value-driver to the ICNQ economy, with many more to come for the benefit of our community.”
According to the internal memo which the Iconiq Holdings released to public knowledge, it indicated that the company is scheduled to be selling up to 10 million remaining ICNQ tokens, with a public token sale taking place on the Gibraltar Blockchain Exchange Grid in October 2018. Though the ICNQ token would be expecting more exchange, it must be traded on Gibraltar Blockchain Exchange after the sale.
The company stated it intends to make the best by opening crypto marketplace to a whole different ball game as it plans to introduce more powerful class investors who will consequently bring “a tectonic change” to the virtual currency world.
Also, it hopes the ICNQ token (on its own) will have the prospect of metamorphosing into some sort of derivative instrument which would reflect the flowing of the nearly unlimited capital available from the external body of conventional finance into the relatively small crypto ecosystem.