- DigitalX is cashing in on the bitcoin craze with the launch of its new cryptocurrency fund
- The fund will provide experienced investors exposure to the bitcoin market through a “familiar and low-cost investment vehicle” without acquisition-based burdens and risks
- The Bitcoin Fund will receive seed funding from DigitalX itself, with the company planning to invest 215 of its own bitcoin stocks to get the asset class up and running
- Currently, one bitcoin is worth $12,787.26
- Shares in DigitalX rose 6.9 per cent on the ASX this morning, up to 3.1 cents apiece as of 1:46 PM AEDT
DigitalX is cashing in on the bitcoin craze with the launch of its new cryptocurrency fund.
The fund will provide experienced investors exposure to the bitcoin market through a “familiar and low-cost investment vehicle” without acquisition-based burdens and risks.
The Bitcoin Fund will receive seed funding from DigitalX itself, with the company planning to invest 215 of its own bitcoin stocks to get the asset class up and running.
The investment is expected to be worth around $2.75 million, based on an individual bitcoin price of $12,800.
DigitalX has held bitcoin assets since 2013 and currently owns 431 of the cryptocurrency units.
From November 25, the company plans to take the fund on the road in the hopes of attracting potential investors. DigitalX will go on a tour through Sydney, Melbourne and Perth to market The Bitcoin Fund to stakeholders across Australia.
The fund will be presented through a wholesale unit trust structure, with bitcoin holdings secured in “the highest graded walled security system available,” provided by cryptocurrency custodian BitGo. The company is insured for over $146 million (US$100 million).
“DigitalX has held its bitcoin position through the 2017 bull market and 2018 drawdown because of our fundamental long-term belief in the value of the asset,” said DigitalX executive director Leigh Travers.
“What has become more and more apparent to us as we speak to investors and market participants generally, is that there is a growing interest in accessing bitcoin from people who have traditionally not considered investment in digital assets,” Leigh explained.
DigitalX’s wholesale bitcoin fund will be licensed and administered by Boutique Capital under Australia’s Corporations Act 2001.
Prospective bitcoin investors will incur a 1.65 per cent fund management fee every year, but will not have to pay performance fees.
DigitalX became a small fish in the bitcoin ocean way back in 2014, originally involved in bitcoin mining services before moving into the trading enterprise.
The company offers Blockchain consultancy and development services with a focus on technology and finance. DigitalX has offices in Perth, Sydney and New York and has a keen interest in emerging technologies.
Currently, one bitcoin is worth $12,787.26.
Shares in DigitalX rose 6.9 per cent on the ASX this morning, up to 3.1 cents apiece as of 1:46 PM AEDT.