BitFunds are aiming to launch Australia’s first exchange listed bitcoin investment fund. They have a basic goal, to provide investors with a simple, regulated and common way to gain exposure to digital assets like Bitcoin and other cryptocurrencies. This goal reinstates with most cryptocurrency hedge funds, who strive to make it easy and painless for their investors to deploy capital to the cryptocurrency digital asset class.
BitFunds raised seed capital in Q4 2017, formed strategic partnerships and then commenced PR and marketing initiatives. Q1 2018 was all about launching their first exchange traded fund, raising capital from investors and then deploying this capital into Bitcoin derivatives. Then in Q3 2018 BitFunds will launch their second crypto fund focused on the top 10 cryptocurrencies.
At present the 2 cryptocurrency hedge funds BitFunds is looking to launch are:
- Fund 1 will be called XBT Investments Limited which BitFunds are currently preparing an IPO for. This listed cryptocurrency fund will be 100% focused on Bitcoin where they will trade Bitcoin future contracts which are cash settled.
- Fund 2 will be T10 Crypto Pty which will be a portfolio of the top 10 cryptocurrencies ranked according to market capitalisation and it will exclude Bitcoin. The fund will be rebalanced on a monthly basis as the market caps change between cryptos.
The team behind BitFunds look to have some impressive credentials. Jason Davis is Managing Director and has 17 years experience in the financial markets and has founded multiple fintech startups. Tim Baker is executive chairman and has experience in hedge funds while David Beros has blockchain and ICO experience through DigitalX.
Both funds that BitFunds are looking to launch, are passively managed crypto funds. At present, Cryptochain Capital is only looking for actively managed cryptocurrency hedge funds to deploy capital across. Our reasoning for this, is we feel there are excellent alpha returns to be achieved within the crypto digital asset class that are above and beyond what an Index crypto fund can achieve.
