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ASX-listed DigitalX launches its own independent Bitcoin fund
Australia's DigitalX, the first cryptocurrency-focused company to trade on a major stock exchange, has announced that it is launching a Bitcoin fund available to qualifying wholesale and professional investors only.
The fund will be accessible through an unlisted structure, enabling “sophisticated investors including family offices and high net worth individuals” to experience and attain exposure to the Bitcoin market with a “low-cost and familiar investment vehicle.”
“The opening of this fund will additionally provide DigitalX investors with further exposure to upside in the price of bitcoin” the Australian Securities Exchange-listed company said in a statement.
DigitalX currently holds 431 Bitcoins and the blockchain consulting service and asset management company will provide 215 of its total own bitcoins to launch the Fund, valuing its investment at around US$1.89 million at current prices.
“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,” explained Leigh Travers CEO at DigitalX.
Travers previously worked for seven years at a publicly listed wealth management firm. He holds a Bachelor of Commerce and Communications from the University of Western Australia and a Fintech Certification from MIT.
DigitalX will partner with BitGo as the fund’s Bitcoin custodian which will offer insurance on assets up to $100 million.
To boost security further, DigitalX will be relying on a blockchain-based registry, which will be used for the transfer of assets into the fund.
The fund will offer a management fee of 1.65% per annum and no performance fees. From Nov. 25 onwards, DigitalX representatives will be taking part in roadshows in Sydney, Melbourne and Perth to promote the fund and meet potential investors.
(DIGITALX SHARE PRICE JANUARY-NOVEMBER 2019 SOURCE: ASX)
Following the announcement of this new Fund, DigitalX shares spiked by 6.9 percent on the ASX, hitting 3.1 cents apiece.
DigitalX is one of the long-standing names in the Bitcoin ecosystem in Australia. In 2014 it first commenced its bitcoin mining operations, prior to expanding those services into bitcoin trading and a deeper understanding and development of blockchain technology generally. The company has offices in Perth, Sydney and New York.
The capital for the new Fund is being expected to be deployed starting December.
Earlier this year, Australian-based investment management firm First Digital Capital (FDC) opened its fund up to wholesale investors for the first time raising $20.4 million, which will be used to invest in blockchain technologies.