SolidX gets $3 million boost, looks to bring bitcoin to institutional investors with "total return swaps"

Coindesk reports that New York-based SolidX has gotten $3 million in venture funding from multiple investors, led by Liberty City Ventures and hedge fund manager James Pallotta. It was not immediately clear how the funding will be spent.

The firm is looking to bring Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term to large institutional investors. SolidX CEO Daniel Gallancy said that Wall Street analysts are aware of bitcoin and think it's great, but can't pitch it to their portfolio managers since "there’s no real way for them to buy." It remains to be clarified how current avenues for buying used by individual investors, such as through Coinbase, are inadequate for institutional investors.

The firm will grant investors the opportunity to gain exposure to bitcoins through its "total return Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term". These simple instruments mirror exactly the changes in bitcoin price, without the investor having to hold real bitcoins. Short positions can also be taken.

Gallancy noted that the swaps are internationally accredited by the International Swap and Derivatives Association (ISDA).

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