The leading Polish insurance company PZU announced that it is entering the crypto asset market with a Bitcoin fund that will offer investors exposure to the cryptocurrency under EU rules.
The minimum investment amount has been set at 100 Polish zlotys, and the insurer noted that the valuation in the national fiat currency of Poland ensures the stability of the currency for the new product.
PZU responds to growing Polish interest in crypto with a Bitcoin fund
Poland's leading insurance service provider, Powszechny Zakład Ubezpieczeń (PZU), revealed that it will offer a product that gives customers indirect access to Bitcoin (BTC), the cryptocurrency with the largest market capitalization.
The new 'inPZU Bitcoin' fund, which will be launched through its investment firm TFI PZU, will replicate the return rate of BTC, the company said in a press release cited by the Polish financial news portal Bankier.pl and the English business newspaper Warsaw Business Journal.
PZU emphasized that it is introducing the product in response to the growing interest in digital assets among Poles and in the context of the ongoing development and growth of cryptocurrency funds globally. It also insisted:
"This is the first investment fund in Poland aimed at a wide range of investors that provides 'pure' exposure to Bitcoin."
With the aim of a low entry threshold, PZU has set the minimum initial deposit at only 100 Polish zlotys (less than $27) and does not require investors to have a brokerage account to take advantage of the offering. An annual management fee of 0.5% applies, as with the insurer's other funds.
The Bitcoin fund will comply with the European Union regulatory framework for Undertakings for Collective Investment in Transferable Securities (UCITS) for investment funds. The latter represents a popular investment option among small investors across the region.
Currently, qualified investors in Poland can invest money in Bitcoin through exchange-traded products (ETPs) and exchange-traded commodities (ETCs), listed on the country's stock exchange and similar to exchange-traded funds (ETFs).
PZU's Bitcoin fund will invest at least 80% of its portfolio in ETC and ETP instruments, with BTC as the underlying asset, the company said, adding:
"The fund cannot buy Bitcoin directly in the market nor enter into derivative contracts based on this cryptocurrency."
The InPZU Bitcoin fund is an index fund that tracks the Bloomberg Bitcoin Index, seeking to reflect the price of BTC expressed in U.S. dollars, the insurer detailed.
PZU also highlighted the improvement in the perception of cryptocurrencies globally, marking last year's regulatory approval of ETFs tracking the price of BTC by the U.S. Securities and Exchange Commission (SEC) as a milestone in this regard.
Investor interest in crypto assets is justified, says PZU
The January 2024 decision by the U.S. SEC has resulted in a dynamic increase in assets under management in such funds, the Polish company elaborated, adding that funds investing in Bitcoin have already accumulated more than $150 billion by the end of May.
PZU analysts are convinced that investor interest in crypto assets is well-founded, as the average annual return on investments in Bitcoin over the past 10 years is around 85%, earning it the title of 'digital gold' and acceptance as a hedge against inflation.
The inPZU Bitcoin fund will go on sale on August 28, the press release revealed. The Polish company warns that it is the riskiest product in its fund offering line, aimed at investors who are aware of the high fluctuations in the value of crypto assets.
PZU is the largest insurance and financial firm in Poland with over $118 billion in assets in 2024, according to the Forbes Global 2000 ranking. It is also one of the largest insurers in Eastern Europe, where cryptocurrencies have been gaining recognition.
In neighboring Czech Republic, for example, the central bank is considering adding Bitcoin to its foreign exchange reserves.$BTC
