A lot is happening in the crypto market. As with thes in the dot-com crisis, the wheat is being separated from the chaff: in recent months, some companies have had to go out of business. The changes will help the market in the medium to long term and leads to a more attractive risk-reward profile due to the drastic price drops. That is why global leading fintech, Raisin, is expanding its investment offering to include cryptocurrencies.
Investors can invest in a portfolio of the most important crypto stocks via Raisin’s German platform WeltSparen. The portfolio represents the largest possible part of the cryptocurrency market and is less susceptible to market fluctuations than investments in single coins. With the crypto product, Raisin completes WeltSparen’s offering as a holistic platform for savings, investments and retirement provision.
Broadly diversified for reduced risks: portfolio contains most important crypto stocks
The new product follows Raisin’s investment philosophy: a long-term investment strategy based on easy-to-understand, low-cost and broadly diversified products – as a clear distinction from speculative trading. Similar to Raisin’s ETF products, Raisin Crypto uses a passive investment concept that allows customers to invest in the crypto market even without experience with single coins. Investments are made in a portfolio that consists of the most important cryptocurrencies. At the moment, these are Bitcoin, Ethereum, Cardano, Solana, Polkadot, Polygon and Avalanche. The composition of the currencies can change according to movements on the market. Particularly questionable cryptocurrencies are subject to a rule-based exclusion.
Well-planned investing instead of speculating: Clear structure and transparent costs
A broadly diversified Crypto investment can enable high profits and reduces risks at the same time. In order to benefit from long-term return opportunities, Raisin Crypto is not designed to bet on individual stocks, engage in tactical trading of cryptocurrencies and adjust the portfolio composition. The largest currencies in the portfolio are capped. This prevents too much concentration on individual coins and helps ensure sufficient diversification. An automated rebalancing takes place every quarter to restore the weighting in the portfolio. The costs for Raisin Crypto are transparent: customers only pay product costs amounting to 1.5% of the portfolio value per year. Performance and management fees as well as custody and transaction costs do not apply.
Kim Felix Fomm, Chief Investment Officer at Raisin, explains: “Cryptocurrencies are one of the most volatile asset classes, which leads to an asymmetric risk-reward ratio: If you invest a small amount, the potential loss is limited to this amount, but the participation in the return is unlimited. Therefore, we consider an allocation of up to five percent in cryptocurrencies in an appropriately diversified portfolio to be sensible. Those who decide to do so must be able to withstand strong price fluctuations. Raisin Crypto is our alternative to short-term trading in single cryptocurrencies, which is usually unprofitable for private investors. We offer a broadly diversified, user-friendly solution that works as a solid investment and can yield a good return in the long run.”
Invest in crypto ETNs from as little as 50 Euros a month
Raisin Crypto invests via an exchange-traded note (ETN). Investors can profit from rising shares without having to hold coins themselves or a wallet for managing cryptocurrencies. After concluding the product, customers can easily and transparently track the performance of the individual cryptocurrencies in their WeltSparen account. Investing in Raisin Crypto is possible from a one-off investment of 500 Euros or in a monthly savings plan from 50 Euros.
Raisin is a pioneer of Open Banking for savings and investment products. The FinTech company provides an open banking infrastructure for the $50+ trillion global deposit market, benefiting banks and savers alike. Savers get a wider choice of attractive products with the ability to move their money freely, while financial service providers get best-in-class marketplace solutions for their own customers, and banks get better access to deposit funding. Raisin operates its own B2C marketplaces – in Europe under the brands Raisin, WeltSparen and ZINSPILOT and in the USA under the SaveBetter brand. In Germany, in addition to savings products the company offers ETF-based investment and retirement products as well as Private Equity investments. Raisin works with over 400 banks and financial service providers from more than 30 countries and has over 750,000 direct customers. Raisin is backed by renowned international investors such as btov Ventures, Deutsche Bank, FinLab, Goldman Sachs, Greycroft, Headline/e.ventures, Index Ventures, Kinnevik, Orange Ventures, PayPal Ventures, Thrive Capital, Top Tier Capital Partners, Ribbit Capital and Vitruvian Partners, as well as Peter Thiel. The company has offices in Berlin, Frankfurt, Hamburg, London, Madrid, Milan, Manchester, New York and Paris.
Mathias Paul & Paul Wolter
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