PEER-TO-PEER robo-lender InvestUp is launching a pilot scheme to test the inclusion of cryptocurrencies in its portfolios.
The P2P investment aggregator, which enables lenders to allocate money across 14 platforms including ArchOver, Assetz Capital and Lendy, says if there is sufficient interest from investors it will ask the Financial Conduct Authority about joining its regulatory sandbox to test the product.
The firm will appoint a crypto review committee to analyse more than 1,000 cryptocurrencies in the first year, with an anticipated inclusion rate of 10 to 35 per cent.
Each will receive a risk rating and investors will be able to choose how much of their portfolio to allocate to cryptocurrencies and how much they put into P2P loans.
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“In recent months, investors have been asking if an investment algorithm could be used with cryptocurrencies,” InvestUp said in a statement.
“After careful analysis, we believe that this is possible. With our proposition, users will set the allocation of their portfolio into each asset class between P2P lending and crypto currencies and the algorithms will work independently of each other, to maximise investor returns.
“Early signs are positive, with 80 per cent of respondents expressing a willingness to get involved. There is specific interest from fund managers, with clients showing interest in this asset class, but where there are few regulated entities with the skills and capabilities of executing investments.”
Investors have earned on average 10.74 per cent using InvestUp, which automatically allocates funds to loans on platforms based on rates that investors choose. The platform is looking to launch its own Innovative Finance ISA, which will be called CrowdISA, in the second quarter of this year.
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