Australian crypto company DigitalX on Wednesday announced the launch of a Bitcoin fund, its second asset management product.
The fund has been seeded with $1.9 million of the company’s own money and is available through a standard unlisted fund structure. It will target sophisticated investors in the country including family offices and high net worth individuals a low-cost and familiar vehicle to gain exposure to this growing asset class.
With this new fund, the company is aiming to grow the funds under management within the new fund at a rapid rate to ensure that the Bitcoin fund achieves critical mass and the company benefits from the fees receivable from it.
The company is one of the early adopters of digital assets. It is holding Bitcoin since 2013 and jumped into crypto mining operation the next year. According to an ASX disclosure, the company is now holding 431 Bitcoins, out of which it will utilize 215 Bitcoins for kickstarting the fund.
Real Life. Real News. Real Voices
Help us tell more of the stories that matterBecome a founding member
KVB PRIME Strikes UK with Influential Finance Summit SponsorshipGo to article >>
“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,” Leigh Travers, executive director of the company, said.
“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.”
Promising a secure environment
The announcement detailed that DigitalX partnered with BitGo to provide custody services to its fund. This will also ensure the trust of the investors as the custody platform is insured with up to a $100 million policy.
Earlier this year, Australia’s First Digital Capital was established with a $20.4 million Bitcoin and blockchain fund. However, the fund was targeting Asian investors instead of going local.
Subscribe to the newsletter news
We hate SPAM and promise to keep your email address safe