Cryptocurrency investment platform BitFund has launched in South Africa allowing investors an opportunity to invest in 20 of the largest cryptocurrencies.

Founded by Jonathon Ferrer, Bradley Goldman, Joshua Miltz, and Dean Joffe, BitFund provides investors with an easy-to-use single point entry to structure a portfolio.

Co-founder Joshua Miltz said: “In South Africa, the only safe and easy way to get investment exposure into cryptocurrencies is through buying bitcoin and ethereum and these are currently only available through a single exchange. Most potential investors lack the technical knowledge and confidence to manually purchase the lesser known cryptocurrencies on international exchanges, but BitFund makes it possible for them to do so.”

Miltz claimed hundreds of investors have already signed up on the platform a day after the platform was launched on July 10.

The Crypto Investment Platform

BitFund has three pre-specified portfolios that include the balanced ten, the equal ten, and the capped 20.

The balanced ten holds the top ten cryptocurrencies weighted by their market capitalisation, the equal ten holds the leading ten cryptocurrencies with equal weighting of ten percent each, and the capped 20 holds the top 20 cryptocurrencies weighted by their market caps with a maximum of 15 percent for each currency. More experienced investors can also choose customisable portfolios on the platform.

“We provide relevant reporting to ensure auditability and transparency into portfolio holdings and rebalancing at a transactional level,” said co-founder Ferrer.

BitFund manages the buying, selling, and safe transfer of crypto assets among the different portfolios and stores them securely in digital hardware wallets. The wallets are then stored in physical vaults for added security.

The Johannesburg-based startup is charging a flat yearly management fee of 2.4 percent and one percent exit fee on at least R1,000 ($75.32).

Regulatory Compliance

According to Miltz, the company has not registered with the Financial Services Board (FSB) since cryptocurrencies have not been defined as financial products. In addition, compliance with the Collective Investment Schemes Control Act has not been a requirement because investors will hold the portfolios themselves and will only use the platform to run them. However, he said the team is working with lawyers to ensure that they comply with the FSB and the Collective Investment Schemes Control Act when the law requires it.

“The company has an experienced team of financial, legal and technology experts who ensure that both the platform and its investors comply with local and international tax and regulatory frameworks,” BitFund said in a statement.

In late 2017, BitFund received an unspecified amount of seed funding from LSD Information Technology founder Stefan Lesicnik, En-novate founder Natan Pollock, and Greymatter Thinking Consultancy founder Richard Cohen to fund its operations.

BitFund’s investment platform could become a driver for further crypto investing in South Africa as it offers diversified portfolios, which facilitates the process of investing in the most promising digital assets.