How to open a crypto fund: choosing a jurisdiction, recruiting staff, obtaining a license, preparing documents
Each type of crypto fund has its own peculiarities. First, you should decide which one you want to establish. Less than half of these institutions operate on the principle of a venture capital fund. Most of them resemble hedge funds, working with virtual assets.
Choosing a jurisdiction to establish a fund and its structure
Most often, funds are opened in Europe (in countries such as Liechtenstein, the United Kingdom, Estonia, Lithuania), Asia, or the United States. Once the jurisdiction is chosen, the fund structure is created. You cannot do without the following specialists:
- manager;
- investment advisor;
- investment manager;
- legal advisor
- administrator;
- auditor.
The sequence of actions will be as follows:
- creation of a legal entity (it can be a mutual fund, LLC and other forms of ownership);
- Obtaining licenses (especially note that in most cases, the manager needs a financial advisor's license);
- preparation of a package of documents (this may include a Memorandum, Management Agreement, Investment Advisory Agreement, Administration Agreement, etc.)
If you need the help of one or more of the above specialists, you should contact a company that outsources services for crypto and blockchain projects. Investment advisors help to predict the state of the crypto asset market and find the optimal organizational and legal structure of the fund.