DigitalX Launches New Bitcoin Fund

A new bitcoin fund has been introduced by DigitalX. The company was the first crypto firm to be listed on a major exchange.

DigitalX was listed on the Australian Securities Exchange (ASX) in 2015 under its former name, DigitalBTC. On Wednesday it announced the news about the new fund initiative. DigitalX elaborated that qualifying investors such as family-run businesses, along with high-net-worth clients, will get access to the cryptocurrency fund through a “standard confidential fund mechanism” without worrying about the efforts and risks involved in holding the asset unswervingly.

Leigh Travers, the executive director of DigitalX said in a statement that:

“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. 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.”

To get the ground rolling, DigitalX will supply half of its Bitcoin Holdings, i.e 215 of it total 431 bitcoin. The total is estimated to be approximately US $1.89 million as per the current Bitcoin price. DigitalX intends to grow its investment at a faster pace and thus, by placing funds under management, returns are expected through fees receivable from the funds. DigitalX claims that it will not be charging any performance fees, however, the management fees are being set at 1.69% per annum.

DigitalX has become a cryptocurrency consultancy, development solutions business, and an asset manager, after a foray in bitcoin mining that was ultimately stopped. The company has had its share of challenges, especially when shareholders pursued a lawsuit over an ICO. The US government also indicted DigitalX’s former executive chairman for alleged participation in an unethical mechanism of text messages.

BitGo, an insurance-backed custody service provider, will be responsible for securing DigitalX’s fund holdings. Additionally, DigitalX intends to add blockchain-based security for registering and transferring of units within the fund.

Boutique Capital possesses a license, and has administered the Bitcoin Fund. The company is also a license holder of DigitalX’s prevailing indexed crypto funds. Boutique Capital was started by DigitalX in April 2018, to provide users exposure to leading digital assets and hypothetically to ICO tokens.


Leave a Reply

Please Login to comment

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Notify of
%d bloggers like this: