Profond Is Not Prepared To Make A Cryptocurrency Investment.
Switzerland’s CHF11 billion (€10.7 billion) small and mid-sized business pension fund, Profond, says it is not yet ready to participate in risky cryptocurrencies, according to CEO Laurent Schlaefli at MONEY – The Swiss Finance Summit.
Cryptocurrency investment was discouraged because of its high volatility and absence of a regulatory framework. Schlaefli clarified that Profond does not own any gold or cryptocurrency holdings.
Last year, Profond saw a 12.7 per cent return on retirement funds with an interest rate of 8 per cent. 52 per cent of the pension fund’s assets are invested in stocks and real estate (25 per cent).
Some members may be apprehensive about the danger of losing their pension savings, which is why Profond likes to concentrate on existing investments rather than new ones.
Distributed Ledger Technology (DLT) was adopted by the Federal Council last year, and it has since been wholly deployed (DLT).
Swiss authorities said the new regulations strengthen the legal environment for blockchain and distributed ledger technology (DLT) enterprises and provide legal clarity regarding the segregation of crypto assets in the case of bankruptcy.
“DLT trading systems” will be granted a new licence category under the Financial Market Infrastructure Act, which will allow them to provide trading services for settlement and custody, available to both regulated financial market participants and private users.
According to a document from the Federal Department of Finance, new regulations for financial market infrastructure have been devised in light of technological advancements.
The market is increasing.
According to the stock exchange, a 673 per cent increase in trade volume from CHF1.1bn to CHF8.6bn was recorded last year in the SIX crypto category.
SIX said that 354,542 trades in crypto goods were made in 2020, a 634 per cent increase over the 48,300 trades made in 2020.
New Bitcoin ETPs from Fidelity are now available for trading on the SIX Exchange, increasing the total number of crypto ETP issuers to 10 and the total number of tradable crypto ETPs to 133.
According to the Swiss Exchange, 208 ETPs and structured products are based on 18 cryptocurrencies available to investors.