Stack, a Singapore-based digital asset platform, announced on Tuesday the launch of a Bitcoin index fund.
Per the press release shared with Finance Magnates, the institution-focused platform is aiming to capture $750 million in assets under management (AUM) within 2020 and to surpass $2 billion in 2021 with its single-asset fund.
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Matthew Dibb, co-founder and chief operations officer at the platform, revealed that the new product had been launched in response to “a dramatic increase in the number of investors seeking to diversify their portfolios using bitcoin.”
“Bitcoin is one of the best performing assets in history—with 19x returns since 2014—and is uncorrelated with traditional markets, making it an attractive prospective investment for both individuals and institutions,” he added. “In Asia, however, there are virtually no risk-adjusted investment portals for the bitcoin market, leaving investors in Asia with no opportunity to access these incredible potential returns.”
Bringing Bitcoin to the mainstream
Listed under the ticker symbol BTCX100, the index fund will provide investors in Asia a flexible and cost-effective means of gaining exposure to Bitcoin.
Targeted at institutional clients, investors need a minimum amount of SGD100,000 (approx $73,500) for investment in the Bitcoin index fund. The announcement also outlined that the platform will charge a management fee of 2.25 percent.
Claiming to be Asia’s first digital asset index fund, the platform has partnered with BitGo, Silvergate Bank, and Coin Metrics custodian, banking, and index solutions, respectively.
“Seasoned investors expect a level of sophistication which is non-existent in the market. Stack bridges this gap—blending knowledge of what investors want and need with data-backed insights into the cryptocurrency space. Right now, especially in Asia, if you are an institution which wants to trade bitcoin—but have significant fiduciary duties—Stack really is your only option,” Michael Collett, co-founder and chief marketing officer at Stack, added.