Raisin, a European savings optimizer service that also operates in the US, has announced Raisin Crypto with the new offering first being launched in Germany under the Weltsparen brand. Raisin operates in the US under the SaveBetter brand.
The Berlin-based Fintech crypto offering is designed to make investments in a passive portfolio that covers the most important cryptocurrencies. Raisin Crypto aims to appeal to people without prior knowledge of cryptocurrencies. Users can invest in crypto ETNs [exchange traded notes] for a one-off investment of €500 or a savings plan of €50 a month.
In a corporate statement, Raisin said that users can invest in a portfolio of the most important crypto stocks, as well as certain cryptocurrencies via Raisin’s German platform WeltSparen. The portfolio represents the largest possible part of the crypto market and seeks to be less susceptible to market fluctuations than single tokens. By incorporating crypto, Raisin describes WeltSparen’s offering as a “holistic platform for savings, investments, and retirement provision.”
The company states that Raisin Crypto adheres to its investment philosophy of providing an easy to understand, low cost and diversified products. This is different from speculative trading. Raisin Crypto uses a passive investment strategy that allows customers to invest in the crypto market even without experience. At the moment, individual digital assets available include, Bitcoin, Ethereum, Cardano, Solana, Polkadot, Polygon, and Avalanche.
Raisin states that a broadly diversified Crypto investment can enable superior profits and reduce risk at the same time. An automated rebalancing takes place every quarter to restore the weighting in the portfolio. The costs for Raisin Crypto amount to 1.5% of the portfolio value per year. Performance and management fees as well as custody and transaction costs do not apply.
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 f
Kim Felix Fomm, Chief Investment Officer at Raisin, commented:
“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.”
Raisin did not reveal its intent for other European markets or North America.
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 reports over 750,000 direct customers.