LONDON A London-based start-up said on Wednesday it would launch the first fund to track an index of digital currencies such as bitcoin in the coming weeks.
DLT Financial said it hopes the tracker fund will make such currencies a more attractive investment asset class.
The new company was spun out of fintech start-up Tramonex, which earlier this year received a 250,000 pound ($333,000) grant from the government to develop a new prototype for currency settlements using the technology that underpins bitcoin.
The index comprises 10 cryptocurrencies – so-called because they use cryptographic signatures to keep the transactions secure. As well as the original cryptocurrency bitcoin, the index includes ether, the digital currency that powers blockchain platform Ethereum, and Ripple, a digital currency designed for bank-to-bank payments.
For a graphic on how bitcoin works, click: tmsnrt.rs/1W1E8mw
Cryptocurrencies are used to send money around the world instantly and at low cost, with no need for third-party checks. They are also bought as an investment that has almost no correlation with other currencies and asset classes, though their volatility