• Tue. Nov 5th, 2024

South Africa’s First Crypto ETF Seeks Approval From Country’s Central Stock Exchange

Apr 16, 2021

ECX which was earlier known as DCX Capital is a South African organization that had developed the country’s index fund relating based on cryptocurrencies. It has been informed by the founder of EXC namely Earle Loxton that the company is ready to launch South Africa’s first-of-its-kind crypto ETF fund.

However, Loxton said that while the plan is final yet the filing is due to be submitted before the concerned authority. The application for launching the ETF fund is going to be submitted to the Johannesburg Stock Exchange (JSE) which is the central stock exchange of South Africa. He further explained that for the purposes of the ETF, the company is looking at the resumes of several crypto asset custodial firms. Once ECX is able to shortlist the potential custodial firm, then the arrangements will be duly recorded through an agreement.

Loxton further informed that since the ETF will be a public listed product therefore ECX is looking for a company which too is a registered crypto company. No decentralized nature crypto custodial firms will be considered for the safe-keeping of the crypto assets, clarified Loxton.

It was further told that the duty of finding the best suitable company is the responsibility of Easy Equities. This Easy Equity is the same company that owns the majority of shares in DCX Capital which it had acquired in the year 2020. He further told that at least ten major crypto assets will be enlisted on the EC10 Index which will include Bitcoin and Ethereum as well.

Loxton was addressing the audience in a podcast message wherein he also spoke about the management fee increase at EC10. Because the fee has been revised and resultantly increased 100% he was asked to give reasons. He stated that before the increment, they were charging a fee @ 1% which was not enough which could bring any profits to the company. In fact, for rendering more services, a company has to collect more fees for onward utilizing in the company services’ expansion, explained Loxton. He added further that considering the fee charges of its competitors, ECX is still charging very few fees i.e. 2% only.

Loxton also apprised that when ECX took over the charge in 2020, its first and foremost objective was to have more and more clients. He told that currently, the company is managing crypto assets to the tune of US$ 27 Million. The highly valued crypto coin under the management of the company is Bitcoin and after that Ethereum. He pointed out that the start of the business was relatively very slow but it got better with the passage of time. This is why the company has revised its management fee structure for the ultimate benefit of ECX’s customers.

But the ball is currently in the court of JSE and it is to be seen whether JSE is all set to allow the first-ever crypto ETF.

Don't Miss Out On Bitcoin Evolution!

The Top Bitcoin and Cryptocurrency Price Prediction Software / Trading Robot

Sign Up

Try Crypto Engine With a Trusted Broker