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 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.
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The firm will grant investors the opportunity to gain exposure to bitcoins through its “total return swaps”. 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).
For a detailed list of recent investment and M&A activity in the crypto industry, please visit the DC Magnates Crypto Deal Table.