Though the value of Bitcoin declining rapidly over the weeks and months, new companies providing Bitcoin services have been gaining strength. New to the list is New York City-based SolidX which has raised $3m to bring financial instruments including ‘total return swaps’ to large institutional Bitcoin investors.
The newly founded organization SolidX’s funding round came from a group of investors led by Liberty City Ventures and hedge fund manager James Pallotta and according to CEO of the company Daniel Gallancy the company wants to provide a Wall Street with Bitcoin investment tools. This is extremely promising solution which is going to help Bitcoin a lot.
He further said that institutional investors, a large pool of capital, have largely been left out of what is a tremendous innovation. Moreover, the team at SolidX which is comprised of professionals with backgrounds on Wall Street knows this quite well and hopes that there won’t be much hassle when their firm moves on it.
In its statement the company says that it sees a huge opportunity to provide the traditional finance industry a way to access Bitcoin. Moreover, as CEO Gallancy has a proprietary trader and tech sector investment analyst background, the company won’t be facing any trouble with the new segment of services that it aims to launch soon.
Investing in Securities Will become Easy for Traders/investors
Gallancy says that Bitcoin is a tough sell to the people making investment decisions in the millions of dollars; however, according to him Wall Street analysts are very aware of Bitcoin, a lot of them think it’s great but they can’t pitch it to their portfolio manager because there’s no real way for them to buy.
He also said his firm offers financial entities, hedge funds and family offices a total return swap, an instrument they are very accustomed to dealing with. According to him a total return swap allows buying or short selling of a security that an investor does not have direct access to. The company says that investors are going to benefit a lot from it.
The total return swap is a form of derivative used by many investors when buying securities in a foreign market where access is limited to only local investors. According to the company the total return swap offered by it gives an institutional investor an avenue to Bitcoin.
To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com
The newly founded organization SolidX’s funding round came from a group of investors led by […]
