The surge in prices of bitcoins haven’t only enriched early adopters, but have also led to a bitcoin based fund to become rated as the best performer over the last twelve months. Distributed through EXANTE, a Malta based financial marketplace that matches investors with hedge funds and asset managers, as of November 18th, the Bitcoin Fund has returned 4874% over the last 12 months.
Similar to an ETF, the Bitcoin Fund matches prices in bitcoin prices by acquiring increments in the digital currency similar to its holding. According to EXANTE, current assets under management of the fund have reached $35 million, with managers charging a 1.75% management fee and 0.5% transaction fee to invest. In its public statement about performance in the fund, EXANTE added that the licensed offering provides an “easy, secure, rapid and real-time access to the vibrant bitcoin market with a unique licensed/regulated product. Since the bitcoin virtual currency was first launched in 2009 and achieved its initial success, institutional investors and hedge fund managers have secretly sought a regulated investment vehicle for bitcoin placements. EXANTE provided this solution by giving simple access to the Bitcoin Fund.”
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While not publicly traded on an exchange, the Bitcoin Fund is similar to the exchange based product that was filed by the Winkelevoss twins with the SEC, but has yet to be publicly floated on an exchange.