SGX-backed digital securities exchange ADDX has launched its first cryptocurrency product on Nov 3.
The listing in question is a digital asset fund by investment manager Trovio Capital Management (TCM).
TCM, under the Australia-based Trovio Group, is led by veteran bankers Jon Deane and Bob Tucker. Trovio CEO Deane comes with over 15 years of experience managing large complex risk positions for investment banks.
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The fund aims to provide accredited investors with a reliable option for crypto investing through institutional-grade safeguards in relation to the trade execution and custody of the fund’s underlying digital assets.
The TCM digital asset fund, in addition to its core positions in Bitcoin and Ethereum, the fund also invests in seven other top-performing cryptocurrencies that have been identified and reviewed on a regular basis using a proprietary method of quantitative analysis.
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According to ADDX, the fund recorded a net return of 215% in 2020 and 205% in the first 10 months of 2021.
Investors on the ADDX platform can subscribe to or redeem units each month with the month manager. The fund’s minimum investment size is US$10,000 ($13,480.60).
“It has been a fantastic experience bringing our flagship fund to ADDX’s MAS-regulated platform. We are continuing to witness significantly wider adoption and appreciation of digital assets as a standalone asset class in a diversified portfolio. ADDX’s platform is enabling investors to seamlessly access these asset classes, whilst reducing riction often experienced via traditional channels," says Deanne.
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"We look forward to working with the ADDX team on launching our other products over the coming months,” he adds.
Oi Yee Choo, chief commercial officer of ADDX, believes that cryptocurrencies are "very likely the digital gold of our age", with "robust demand" among investors for such digital assets.
She observes that the "traditional world" of finance had tried to keep a "cautious distance", but now, major financial institutions either have a crypto offering or are seriously considering one.
"We believe the time for discussing whether cryptocurrencies have a place in an investment portfolio is all but over. The more relevant question now is around how one should manage the risk of crypto investments, from an asset custody as well as a price volatility standpoint. Professionally managed crypto funds with a good track record can potentially address these risk concerns for investors,” she adds.