BitFund, a new diversified cryptocurrencies investment platform, has been launched in South Africa. It offers potential investors the opportunity to in index portfolios of more than 20 of the largest cryptocurrencies.
BitFund was founded by Joshua Miltz, Jonathon Ferrer, Bradley Goldman, and Dean Joffe.
“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," said Miltz.
Each of the three available portfolios on at BitFund offer investors cryptocurrencies such as Bitcoin, Ethereum, Ripple, Litecoin, IOTA, EOS, Cardano, Stellar, NEO and others. Even though BitFund customers invest in cryptocurrencies, the company says they don't have to worry about storing their cryptocurrencies in a wallet as BitFund does that on behalf of customers using hardware wallets stored in vaults.
“Through BitFund, we manage all the tax-related, exchange control and technical due diligence of investing in multiple cryptocurrencies, keeping costs down and maintaining strict security. We have also dealt thoroughly with the legal and regulatory compliance of cryptocurrency investment. The BitFund website has been designed to be safe and simple to navigate, opening up cryptocurrency investing to more people,” said Miltz.
BitFund has created three prespecified BitFund portfolios that have been structured to remove the complication of selecting individual cryptocurrencies. These are:
The Balanced 10 Portfolio, which holds each of the top 10 largest cryptocurrencies weighted by their market capitalisations;
The Equal 10 Portfolio, which holds each of the top 10 largest cryptocurrencies with equal weighting of 10% each; and
The Capped 20 Portfolio, which holds each of the top 20 largest cryptocurrencies, weighted by their market capitalisations, with a maximum of 15% per cryptocurrency.
With a flat annual management fee of 2.4%, a 1% exit fee and a minimum investment amount of R1,000.00, BitFund investors are assured that their funds will not be depleted by hidden costs. 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 will also manages the purchase, sale and safe transfer of the cryptocurrencies within the different portfolios and securely stores these locally off the international exchanges. Portfolios are reported to be rebalanced weekly to fortnightly to keep investors’ desired exposure stable, and to adjust portfolios based on market performance. The only time that a portion of the funds in the various portfolios resides on an international exchange, including Binance, Bitstamp, Bittrex and others, is briefly during the rebalancing process.
“Financial service providers will benefit from a plug-and-play solution that enables them to provide access to a variety of cryptocurrencies, removing the need for active trading and storing of cryptocurrencies on their customers’ behalf,” concluded Miltz.