DIGITAL ASSET INVESTMENT MANAGEMENT
Crypto-asset exposure for UHNW Investors, family offices and institutions
FREQUENTLY ASKED QUESTIONS
WHAT DO BLOCK VENTURE PROJECT DO?
We help our clients to gain exposure to digital assets as part of a well diversified portfolio. We offer advice and recommendation on exchange tokens and utility tokens (which are not considered e-money) as prescribed in FCA CP 19/3 (https://www.fca.org.uk/publication/consultation/cp19-03.pdf). We specifically do not deal in security tokens as prescribed in this document.
CAN YOU HELP ME INVEST IN BITCOIN?
Bitcoin is one of many digital currencies that our clients are given suitable exposure to through our services. We work with our clients to see if digital assets would compliment their overall investment portfolio and match with their attitude to risk before becoming their digital asset advisor.
DO YOU INVEST IN INITIAL COIN OFFERINGS?
No. We tend not to expose clients to tokens from projects in such early stages due to the high rate of failure among ICOs. Although we are happy to consult with clients as to the legitimacy of such projects, we would usually not look to advise anyone on an investment decision.
DO YOU HAVE A MINIMUM INVESTMENT AMOUNT?
Yes. We only work with High Net Worth Individuals and those who can correctly certify that they are sophisticated investors as per the FCA definitions. As such, we usually only work with clients who have total investable assets of £100,000,000 plus.
WHAT ARE EXCHANGE TOKENS?
As per the FCA: 'Exchange tokens: these are not issued or backed by any central authority and are intended and designed to be used as a means of exchange. They are, usually, a decentralised tool for buying and selling goods and services without traditional intermediaries. These tokens are usually outside the perimeter.'
WHAT ARE UTILITY TOKENS?
As per the FCA: 'Utility tokens: these tokens grant holders access to a current or prospective product or service but do not grant holders rights that are the same as those granted by Specified Investments. Although utility tokens are not Specified Investments, they might meet the definition of e-money in certain circumstances (as could other tokens), in which case activities in relation to them may be within the perimeter.'
ARE DIGITAL ASSETS RISKY?
Yes. We would not suggest that anybody looks to invest in digital assets without expert help or requisite experience. However, there are reasons as to why exposure to digital assets can help improve diversification of an overall portfolio - but only if managed correctly.