DigitalX, which debuted on the Australian Securities Exchange (ASX) under its previous name DigitalBTC as far back as 2015, announced the new fund on Wednesday. The firm said it’s offering qualifying wholesale and professional investors like family offices and high-net-worth individuals exposure to the cryptocurrency via a “standard unlisted fund structure” without the trouble and risk of holding it directly.
DigitalX executive Leigh Travers said within the announcement:
“DigitalX has held its bitcoin position through the 2017 market and 2018 drawdown due to our fundamental long-term belief within 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’s a growing interest in accessing bitcoin from people that have traditionally not considered investment in digital assets.”
To get the fund off the bottom , DigitalX will provide 215 of its total 431 bitcoin, valuing its investment at around US$1.89 million at current prices. The firm said it aims to quickly grow the investment vehicle and hence its funds under management, and can see income via the fees receivable from the fund. Management fees are disclosed as being set at 1.65 percent annually, while no performance fees are going to be charged.
The fund’s holdings are going to be secured via custody services provided by insurance-backed BitGo. DigitalX further plans to use “blockchain-based security” for the registration and transfer of units within the fund.
The Bitcoin Fund is licensed and administered by Boutique Capital, which is additionally the licensee of DigitalX’s existing indexed crypto fund. Launched last April, that fund was said to offer exposure to “leading” crypto assets and potentially ICO tokens.
DigitalX, following a enter bitcoin mining that was later abandoned, has morphed into a corporation offering blockchain consulting and development services and asset management. It’s not been without its controversies, having been taken to court by investors over an ICO that it acted as adviser. Its former executive chairman was also indicted by the United States government for alleged involvement during a fraudulent text messaging scheme.