With offices in Malta, Russia, Singapore, Latvia and the Netherlands, EXANTE provides broad and extensive direct access to financial instruments and global markets. The company has experienced enormous growth since its formation in 2011, assisted in part by the 2012 launch of the Bitcoin Fund (BCF), which trades exclusively on the Exante Fund platform.
BCF is the world’s first financial product based on bitcoins, which gives institutions and high-net worth individuals convenient, secure, rapid and real-time access to the vibrant Bitcoin market with a unique licensed product. Assets under management currently total $24 million. The Fund charges no performance-based fee. Charges include an annual management fee of 1.75%, and an 0.5% transaction fee, does not use leverage or derivatives for risk management, and there is no discretionary management. One Fund share is strictly equal to the value of one bitcoin, which are bought and sold as investors buy and sell Bitcoin Fund shares.
EXANTE provides a dynamic secondary market for the trading of Fund shares— and, through those shares, bitcoins.
The Bitcoin Fund is now included in Bloomberg and a variety of other fund rating services. Traders on the Bloomberg terminal can thus track the Bitcoin Fund and trade in the digital currency (through EXANTE’s ATP). “Working through a fund structure has a clear advantage: accountants and auditors understand what fund shares are; in general, they have no idea what bitcoins are,” Exante Partner Tim Enneking told the audience at Bitcoin 2013 in San Jose early this year. “Furthermore, for investors buying or selling large numbers of bitcoins, EXANTE can provide assistance to reduce market disruption by buying or selling bitcoins gradually, at a target price set by the customer.
And how have prices in the Bitcoin Fund performed in the Fund’s inaugural year?
As of mid November, the fund was up over 5,000%, and Mr. Enneking commented, “We have researched every major fund database we could find to determine what the all-time record for calendar year performance for an investment fund is. If 2013 were to end today, the Bitcoin Fund would clearly be the best ￼performing fund in history.”