Global Advisors appoints Gemini Trust Company and itBit as bitcoin custodians

Announcements | November 4, 2016 By:

Global Advisors has named Gemini Trust Company and itBit as custodians for its flagship Global Advisors Bitcoin Investment Fund ahead of a possible listing on the Channel Islands Securities Exchange by the end of this year.

The two custodians are both US-domiciled New York State-charted limited purpose trust companies that are regulated bitcoin custodians. In addition to meeting the capitalisation, reserve, compliance, consumer protection and cyber-security requirements of the New York State Department of Financial Services, the custodians will provide secured IT storage systems and cold storage vault systems for GABI’s bitcoin holdings. The use of dual custodians adds further de-risking in the storage of the fund’s investments.

In addition, the fund has added new powers allowing the manager to engage in cross-market arbitrage, futures-to-cash arbitrage, coin lending and leverage. The manager also maintains an account with Interactive Brokers LLC in order to be able to supplement the portfolio with interests in certain non-bitcoin commodity futures contracts such as oil, metals and currency pairs, with the aim of protecting and where possible enhancing returns by creating pair-trading and hedging opportunities. No more than 25% of the NAV (Net Asset Value) will be allocated to non-bitcoin based commodities.

Jersey-based Global Advisors was co-founded by CIO Daniel Masters. The company and its predecessors have provided professional asset management in commodities since 1999, and now concentrates on bitcoin investment products and blockchain technology companies.