04/04/22

IRELAND: Central Bank approves qualified exposure to crypto assets.

As published on internationalinvestment.net, Monday 4 April, 2022.

The Central Bank of Ireland (CBI) has advised Irish Funds that they have approved in principle a Qualifying Investor Alternative Investment Fund (QIAIF') with a low level of exposure to cash settled Bitcoin futures traded on the CME.

This is the first type of indirect crypto exposure approved for a QIAIF.

For the time being, QIAIFs, which propose exposure to crypto assets, are required to make a submission to the Central Bank as set out under their Q&A.

In a statement, Irish Funds said the central bank's approach in relation to crypto assets will be kept under review and will continue to be informed by European regulatory discussions.

Pat Lardner, chief executive at Irish Funds said: "The latest notice that the Central Bank of Ireland have approved, in principle, indirect crypto exposure for a QIAIF is a welcome first for the industry in Ireland. Irish Funds will continue to monitor developments and contribute actively to the policy discussions and innovations in this area.

"This news comes as the funds and asset management industry in Ireland continues to grow, cementing Ireland's reputation as a key strategic investment fund location by the world's leading asset managers, supported by our global reach, proven expertise, full market access to the EU and a supportive business environment."

The funds industry in Ireland continues to grow, with data from the CBI as end of December 2021, showing assets in Irish domiciled funds surpassing €4trn for the first time, a 22.5% growth across all funds, with a growth of 42.1% in exchange traded funds (ETFs).