DigitalX Rolls Out A New Bitcoin Fund, Injecting 215 BTC ($1.9 Million) Of Their Own Holdings
DigitalX, the first cryptocurrency firm to ever be listed on one of the major stock exchanges has seeded a Bitcoin fund with $1.9 million in cryptocurrency, from its own holdings.
The new fund is meant to help people with a high net worth and family offices to gain more exposure to Bitcoin through a familiar vehicle and is being offered as an unlisted fund structure.
The Fund’s Seed is 215 Bitcoin
DigitalX has been actively involved with the Bitcoin ever since 2014 when it started mining and offering trading or other types of services to blockchain users. It is a company listed with the Australian Securities Exchange and has provided ICO or Initial Coin Offering advice, consulting on the blockchain, also services on managing assets. From the announcement it made, it results that it has been holding Bitcoin ever since 2013, now having 431 BTC, which is valued at $3.8 million.
For the new fund to be established, DigitalX has seeded 215 BTC, valuated at $1.9 million. The opinion is that this is going to help with the achieving of critical mass and allowing the firm to make a profit from the receivable fund’s fees. Starting with November 25th, representatives from the company will start touring Melbourne, Sydney, and Perth in order to promote the product and to meet with potential investors.
BitGo Insurance for the Fund’s Holdings
The fund’s holdings will be kept secure through BitGo custody services, which offer insurance on assets worth up to $100 million. DigitalX claims that it will provide institutional-grade standards when it comes to custody, securing the holdings of the company and of clients into a high-security wallet. The blockchain security will also be applied for registering and transferring units.
DigitalX Settled a Claim in the Past
In August 2018, DigitalX has been served an Originating Application and Statement of Claim pertaining to an ICO investment that the company advised. The claim was filed in Australia’s Federal Court by clients, for $1.8 million and damages. DigitalX denied the claim and defended itself in the beginning, but in May 2019, it settled without admission of liability and paid $240,000 in shares, plus $275,000 in cash to the applicant. However, it also pledged to recover a part of the settlement funds by pursuing contractual indemnities.