Earle Loxton, co-founder of EC10 (formerly known as DCX Capital), the organization behind South Africa’s crypto index fund, said that he is planning to launch South Africa’s first exchange-traded fund (ETF). The ETF is expected to provide South African institutional investors with indirect access to Bitcoin.
According to Loxton, the ETF application will soon be submitted to the Johannesburg Stock Exchange (JSE). However, Loxton also revealed in the podcast that before proceeding with the application, EC10, together with Easy Equities, will first prioritize finding suitable custodians for its encrypted assets. Loxton explained:
In order to reach the level that we meet the requirements of listing tools, we absolutely need the services of specialized, regulated and registered custodians.
Therefore, as part of an arrangement, Easy Equities acquired a controlling stake in DCX Capital in 2020, which will help ensure the services of the custodian. The custodian will securely store part of the ten crypto assets that make up the EC10 index.
At the same time, in the podcast, Loxton also spent some time explaining the decision to increase the EC10 management fee from 1% to 2%. In justifying the increase in fees, the co-founder of the fund said:
“Frankly speaking, at a 1% interest rate, we will never grow at a rate of 1%.”
Loxton also added that since the company currently manages assets valued at $27 million and has a slow start, there are reasons to increase expenses. EC10 Index Fund.
Do you believe that JSE is now ready to approve crypto ETFs? Tell us what you think in the comments section below.
Picture Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for reference only. It is not a direct offer or solicitation of an offer, nor is it a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. For the use or reliance on any content, goods or services mentioned in this article, or any loss or loss related to it, the company or the author shall not directly or indirectly bear any responsibility.