JSE-listed investment group Sabvest announces its 30 percent investment in Revix, a digital assets platform. Photo: File

DURBAN - JSE-listed investment group Sabvest announces its 30 percent investment in Revix, a digital assets platform offering diversified cryptocurrency bundles similar to index funds prevalent in mainstream investing.

The funding will be used to refine the platform’s technology suite, springboard the company onto the global stage, and to educate investors about the benefits of a diversified exposure in cryptocurrencies - not just Bitcoin or Ethereum alone - within an investment portfolio.

The stake in Revix coincides with growing appetite for cryptocurrencies. The ING International Survey on Mobile Banking released in June 2018, estimates that on average, 9 percent of Europeans own cryptocurrency, while in Turkey this figure is as high as 18 percent.

"For most investors, if you're looking to gain exposure to any asset class it makes sense to hold a diversified basket of assets within that class. Revix is applying this same principle to a nascent and dynamic industry," said Chris Seabrooke, Sabvest Chief Executive.

Seabrooke added, "We have invested in a number of tech-focused companies over the years, including a global leader in distributed ledger technology, on which blockchain is based, so we’re familiar with developments in this field. We believe that the digital asset ecosystem has significant growth potential in our increasingly digitised world". 

"No one can predict which currencies will gain traction, and which will fall away. Typically, investors tend to be over-concentrated in Bitcoin, which is only one part of the growth story. The time is right for a passive investment product, which is similar to an exchange traded fund, which is regularly rebalanced and comes with lower investment fees," said Sean Sanders, Co-founder of Revix.

The Revix platform gives the investor exposure to over 80 percent of the cryptocurrency market through a portfolio or ‘bundle’ of the top 10 cryptocurrencies. Investors can invest as little as R500, which makes this platform attractive to the everyday investor. 

"Our bundles are aimed at investors who are interested in cryptocurrencies, but don’t have the time or inclination to research every opportunity, work out the technicalities of investing, or properly understand the challenges of holding their own crypto assets," said Louis Buys, the second Co-founder of Revix.

Revix uses proprietary technology to plug into global exchanges, with a smart pricing algorithm seeking out the best available pricing for investors on reputable exchanges. 

"Typically, by connecting with global, liquid markets and using technology, we can get better prices than what has otherwise been available to local investors," added Buys.

For South African investors, cryptocurrencies provide another rand-hedging possibility. After launching in South Africa as a test market, Revix plans to expand into Europe and the UK followed by Australia and New Zealand.

Seabrooke believes the time is right for a better investor platform for cryptocurrencies. "We've seen the irresponsible gambling-esque approach to cryptocurrencies a few times now. It's about time we take a different, more sensible approach to this asset class," concluded Seabrooke.

BUSINESS REPORT ONLINE