Kvarn bitcoin/cryptocurrency fund for golden visa?

Anyone know if this is legitimate? https://kvarnportugal.com/

"About KvarnPortugal Fund:

The first fully digital asset-based fund that offers a full path to Portuguese Residency, developed in partnership with Fundbox and Kvarn X. In strategic collaboration with CoinDesk Indices, we’re revolutionizing investment-based immigration through digital assets

Investment portfolio

  • 80% Bitcoin
  • 20% CoinDesk 20 Index, captures the performance of top digital assets"

they go on to claim “At least 60% of the fund’s investment must be in commercial companies with headquarters in Portugal. KvarnPortugal Fund invests 100 percent into its Portugal entity.”, so perhaps this would actually fit the golden visa investment requirements?

Personally, either this or a general stock index fund are the only things I would really consider for investing towards a Golden Visa. Thank you for any advice.

How is investment in Bitcoin considered “investment must be in commercial companies with headquarters in Portugal”

Not sure, that’s how I feel as well. But the company claims it is acceptable for a golden visa, but how can one be sure of this?

I suspect they set up companies in Portugal, and then the bitcoin investments are made through those companies. It doesn’t seem to be in the spirit of the rules, and I would be concerned about them looking more closely at it.

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This is correct. Portuguese Company A buys crypto. Fund invests in Company A which is 100% Portuguese. The downside to this structure is some risk the government doesn’t like it and taxes. There may also be tail risk of Company A changing it’s investment strategy and not being held to the same standards as a fund directly buying, I’m not sure about this.

do you think the portuguese government could just say “this doesn’t count” after 5 years and u have wasted all the time/fees for nothing?

It’s possible but a low probability imo. If you’re seriously considering it you could also think about consulting with a third party neutral lawyer and see what they say about it.

Seems kind of fishy. The Portuguese legal system is… well meh. You don’t want to risk investing in such a thing there. What if the companies don’t manage the crypto like they are supposed to? At the end would the fund liquidate the companies? When you invest in a fund, you expect investor protection. When you invest in companies or the fund invests in companies one your behalf, not so much. It’s a bit iffy. Crypto is inherently a dangerous and you don’t want to invest with a shady custodian in Portugal.

If you are working with an attorney they will be able to confirm for you. If you are not I highly suggest you at least do a consultation and inquiry, for peace of mind. If you have an attorney and they don’t know then find a new one. In my time working for a firm that handles GV, I have never seen this fund or met with them. But also it’s hard to find a full list of eligible funds by a reputable source.

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