“Recent price weakness has been observed and attributed to a series of factors,” the firm said in a statement. “The withdrawal of UK banking services on the Isle of Man, issues with the NYDFS Bit-license, Russian Treasury comments and weakness in gold markets are elements which contributed to recent price weakness. We timed our entry to the bitcoin market accordingly. We believe the resulting entry point represents an opportune moment to initiate our first round of capital deployment.”
In lay terms, it means they bought in after last week’s price crash with the expectation that Bitcoin’s exchange value will begin to rise again.
“We are delighted to have executed our initial over-the-counter Bitcoin purchase with digitalBTC and we look forward to expanding our relationship as GABI’s assets grow,” director of Global Advisors Bitcoin Investment Fund Daniel Masters said. “digitalBTC offers GABI valuable liquidity and price discovery while being a strong counterparty."
Global Advisors partner Jean-Marie Mognett also mentioned that the fund was partnering with the Bitfinex and Coinsetter exchanges. The company also notes it will open its fund up for additional subscriptions on a monthly basis.
Jersey as a Bitcoin Hub
Cointelegraph reported on GABI in July, when it first received regulatory approval to operate in Jersey.
“Jersey, rightly prides itself on being among the top tier of jurisdictions when it comes to compliance and has proven many times that innovation in new financial products and the highest regulatory standards are not mutually exclusive,” Masters said in a statement at the time. “This is why we have chosen to domicile the Global Advisors Bitcoin Investment Fund in Jersey, to bring together the benefits of a secure environment with an exciting new technology.”
There is also the ongoing campaign to turn Jersey into a Bitcoin Isle.
"[This] is a sector that could hold significant opportunities for Jersey,” Jersey Treasury Minister Philip Ozouf said in July. “Our infrastructure of world-class financial services and digital expertise gives us the tools to be an early leader in the field. Innovation will be central to Jersey's future prosperity. We are keen to support local businesses by helping to create a well-regulated and responsive environment for investment in the sector."