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Maples and Calder advises funds on crypto exposure

Maples and Calder (Ireland) LLP has advised on the first Irish-regulated funds to be granted permission by the Central Bank of Ireland (CBI) to take exposure to crypto-assets. 

The approval will enable two ‘Qualifying Investor AIFs’ (a category of alternative investment fund that is restricted to professional investors) to obtain indirect exposure to Bitcoin, by acquiring cash-settled Bitcoin futures, which are traded on the Chicago Mercantile Exchange.

The firm says that this is the first approval of its kind since the CBI published guidance in August 2021, which opened the door to the possibility of Qualifying Investor AIFs investing in crypto-assets.

Bilateral engagement

It follows an extensive bilateral engagement with the CBI to demonstrate how the risks associated with the proposed investment could be adequately addressed.

Adam Donoghue (co-head of funds and investment-management practice) said the firm was proud to have acted on this “exciting and innovative approval, which is a breakthrough development for the Irish funds industry”.

“Maples and Calder LLP clients are seeing significant demand from institutional investors to allocate to crypto-currencies and other digital assets, so it is positive that the Irish regulatory framework now accommodates this rapidly emerging asset class”, he added.