In Brief:
- An investment firm called ‘silver castle’ introduced a new way of investment in Bitcoin through bond
- This approach will assure less investment risk in Bitcoin.
Digital asset investment firm, Silver Castle and Tel Aviv stock exchange announced the first-ever issuance of the Bitcoin backed bonds on TASE UP. By this new approach of investment, institutional and qualified investors could step into a digital currency sector.
This new approach was resisted by some economists and had raised questions on investors as authorities asked for the report of current year investment in bitcoin. The authorities mentioned in the letter that it considers investing in bitcoin to be speculative, claiming that it has no intrinsic value.
The duration of the bond will be three years with no interest rate. The capital which will generate in allocation will be used for the purchase of Bitcoin. TASE UP will examine and regulate bonds under standard rules.
The new financial approach comes up with less operational risk and holding cost in Bitcoin investment. Before this, direct purchase and holding, delivery agreements, and hedge funds were the only way to get access to Bitcoin.
Silver Castle was established in 2018 with the help of Israeli banking and capital market executive support, including Zvi Ziv, former CEO of Bank Hapoalim, Gaby Ravid, former CEO of Psagot Investment House, and Eli Mizorch, formerly a senior executive in Bank Hapoalim and CEO of Golf. The purpose of this development was to find opportunities for digital currency investment for investors.
TASE UP is the independent private platform of TASE’s public trading platform, where listed companies are private ones, whose intention is to collect funds from institutional investors and qualified clients. These companies are not subject to reporting requirements under the Israel Securities law.
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