First-time bitcoin users have been targeted by Circle Internet Financial Ltd, a web technology platform for financial transactions, which is backed by Goldman Sachs Group Inc. The company is set to launch a feature on Tuesday and called “Buy the Market.” It will allow its clients to use the Circle Invest app to deal with all the seven virtual coins offered on the company’s portal simultaneously.
A minimum of $1 investment is allowed on the platform which would be used to buy all the tokens depending on their on-going market value. Jeremy Allaire, CEO Circle, said that his company earns through the 1 percent gap it accounts between the buy and sell prices. The coins available to the users would be Ethereum, Bitcoin, Ethereum Classic, Bitcoin Cash, ZCash, Litecoin, and Monero.
In an interview on Monday, he said, “The vast majority of invested capital by individual investors and retail investors — the vast majority of any asset class, whether it’s stocks or bonds or currencies or crypto — is more passively managed. If you’re a newbie and you feel like you’ve missed out or you’re interested now in investing in this category, this is a tried-and-true model that’s worked in retail investing.”
Circle is not the only option available to crypto investors as other companies’ dealing in digital currencies have launched similar projects. Earlier this March, Coinbase, a crypto exchange announced that it would be releasing an index fund for recognized investors that will keep a check on four coins present in its marketplace. But, Allaire defended the new venture by stating about the low minimum investment and the more extensive client base it would have due to openness to retail buyers.
The role of US Securities and Exchange Commission has also been of vital importance in the industry. Most of the virtual money start-ups have opted to work with certified and experienced investors to minimize the risk from new regulatory policies. The US regulatory authority has been classifying tokens as securities, but Allaire thinks that his coins are not part of the threatened category.
He further said that his company has been in contact with the SEC over its exchange business. The company recently announced that it would be acquiring Poloniex Inc, a crypto trading venue.
Allaire informed that his company is interested in expanding its business through a federal banking charter, lending and custodial services.
In an official announcement, last week Circle announced that it shut down a funding round conducted by Bitman Technologies Ltd, a popular bitcoin miner, for $110 million. Its valuation was raised from $480 million in 2016 to $3 billion. The company is trying to exploit its vast user base of 7 million for promoting its fiat based digital tokens made with the help of Bitman. The tokens will probably be issued in the summer being supported by US dollars.
Circle’s new venture will have a significant impact on the digital assets space. New crypto investors are sure to get a boost as they will have the expertise of an established company in making initial deals in the volatile world of crypto.
