Bitcoin

DigitalX Unveils Establishment of Its Second Asset Management Product “Bitcoin Fund”

Australian blockchain advisor and asset management firm, DigitalX, is essentially cashing on the current bitcoin craze with the launch of its less complicated cryptocurrency fund.

Half of DigitalX’s bitcoin stocks that are $2.75M will be invested behind this new fund to get the platform up and running. Users will be charged a mandatory management fee of 1.65% annually. However, no performance fee will be incurred. The unlisted fund, initially, will only be available to professional as well as wholesale investors.

This new fund will aim to provide experienced investors an adequate amount of market exposure that they need to make the right decisions. And the upcoming platform will do so by deploying a “familiar and low-cost investment vehicle” minus all the acquisition-based burdens and risks. With the new bitcoin fund, investors will now be able to store bitcoins using a secure wallet and trade even more quickly.

The capital is being expected to be deployed starting December, according to Leigh Travers, Executive Director at DigitalX. He commented,

Investors have been cautious about getting involved in the bitcoin space because of the strict rules. They don’t know how to custody, or administer it, or how to account from a tax perspective.

The new Bitcoin fund will have the standard unlisted fund structure to allow sophisticated investors to gain exposure to this rapidly growing asset class.

DigitalX has been significant in holding Bitcoin assets since 2013 and at present, owns 431 of the cryptocurrency units. Travers added,

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.

DigitalX began operating in the bitcoin space way back in 2014, primarily with bitcoin mining services followed by the trading enterprise. Today, the company offers not only Blockchain consultancy, but also develop solutions and services to businesses focusing on technology and finance.

With the announcement of this new Bitcoin fund, DigitalX shares spiked by 6.9 percent on the ASX, hitting 3.1 cents apiece and rising.

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David Cox

David is a finance graduate and crypto enthusiast. He projects his expertise in subjects like crypto and Blockchain while writing for CryptoNewsZ. Being from Finance background, he efficiently writes Price Analysis. Apart from writing, he actively nurtures hobbies like sports and movies.
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