Co-Founder of South Africa’s Crypto Index Fund Reveals the Plan to Launch Country’s First Bitcoin ETF
Earle Loxton, the cofounder of EC10 (formerly DCX Capital) the institution behind the South African crypto index fund, says plans are afoot to launch the country’s first exchange-traded fund (ETF). The ETF is expected to offer South African institutional investors an indirect way of getting exposure to bitcoin.
According to Loxton, an application for this ETF will soon be lodged with the Johannesburg Stock Exchange (JSE). However, Loxton also reveals in a podcast that before proceeding with the application, EC10 alongside Easy Equities will initially prioritize finding a suitable custodian for its crypto assets. Loxton explained:
To get to the level where we will be compliant with the requirements of a listed instrument, we definitely need the services of a dedicated, regulated and registered custodian.
Therefore, as part of an arrangement, Easy Equities, which acquired the controlling stake in DCX Capital in 2020, will help secure the services of a custodian. This custodian will safely store some of the ten crypto assets that constitute the EC10 Index.
Meanwhile, during the podcast, Loxton also took the time to explain the decision to hike the EC10 management fees from 1% to 2%. In justifying the fee increase, the fund’s co-founder said:
“At 1% to be absolutely honest with you, we were never going to make a profit at 1% growing at that rate.”
Loxton also adds that because the business, which now has $27 million worth of assets under management, experienced a slow start, it, therefore, made sense to hike the fee. The EC10 index fund.
Do you believe that the JSE is now ready to approve a crypto ETF? Tell us what you think in the comments section below.
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Author: Terence Zimwara