Cryptocurrency investment company, BitFund, has launched its service platform in South Africa to give investors the chance to invest in several digital currencies.
BitFund was founded by Joshua Miltz, Jonathon Ferrer, Bradley Goldman, and Dean Joffe, with the aim of offering investors with user-friendly single point access to structure a portfolio. While speaking about the platform launch, Joshua Miltz, a co-founder of the company, said that:
“In South Africa, the only safe and easy way to get investment exposure into cryptocurrencies is through buying bitcoin and ethereum, and these are currently only available through a single exchange. Most potential investors lack the technical knowledge and confidence to manually purchase the lesser known cryptocurrencies on international exchanges, but BitFund makes it possible for them to do so.”
BitFund features three pre-specified portfolios – the balanced ten, the equal ten, as well as the capped 20. Based on their market capitalization, the balanced ten comprises of the top ten cryptocurrencies. The equal ten holds the top ten digital currencies with equal weighting of 10% each, while the capped 20 features the top 20 cryptocurrencies weighted by their market caps with a maximum of 15 percent for each currency.
The platform also features customizable portfolios of which experienced investors can make a selection from. Another co-founder, Ferrer, explained that: “We provide relevant reporting to ensure auditability and transparency into portfolio holdings and rebalancing at a transactional level.”
BitFund Aims to Comply With Regulatory Frameworks
The company is yet to be registered with the country’s Financial Services Board because digital currencies have not been legally identified as financial assets. The compliance with the South African Collective Investment Schemes Control Act has also not been an obligation since potential investors will manage the portfolios and will only run them with the use of BitFund’s platform. Miltz revealed that the team is currently working with legal practitioners to see to the company’s compliance with the Financial Services Board and the Collective Investment Schemes Control Act as the laws and regulations require it. According to an Official Statement by BitFund:
“The company has an experienced team of financial, legal and technology experts who ensure that both the platform and its investors comply with local and international tax and regulatory frameworks.”
BitFund manages service operations such as buying, selling, and safe transfer of digital assets among the various portfolios. The company also stores these crypto assets in digital hardware wallets, and the hardware wallets are kept in physical vaults to ensure that they are secured. Clients are expected to pay a 2.4% fee for their asset management every year, and a 1% exit fee on $75 (1,000 Rand) minimum stake.
Miltz added that many investors have already shown interest by signing up on the platform just a day after the BitFund launched its platform in the country.