Crypto Dealer SFOX Raises $22.7M to Create Products for Institutional Investors

SFOX, a cryptocurrency dealer that offers trading services for institutional investors, has closed its Series A funding round at $22.7 million.

The leading investors in the round, Tribe Capital and Social Capital, were announced yesterday. SFOX also received contributions from Airbnb Co-Founder Nathan Blecharczyk, Danhua Venture Capital, Digital Currency Group, and Y Combinator, among others.

I’ve been waiting to discuss this investment for a while. @SFOX is the most interesting investment in crypto I’ve seen since @DCGco and $BTC itself. This company is worth paying attention to...Excited to have invested. https://t.co/e4Wwj6cOza

— Chamath Palihapitiya (@chamath) August 16, 2018

The firm says that the funding will be used to create and launch asset management services for cryptocurrency and to increase the company’s offices and staff.

SFOX Targets Institutional Investors

SFOX was initially founded in 2014, and describes itself as “a cryptocurrency prime dealer for large-scale investors such as funds, family offices, and high-net-worth individuals.”

The firm assists high-volume traders in fulfilling their buy and sell orders by integrating with a variety of exchanges. SFOX has reportedly processed $9 billion in transaction volume to date and has reported a 1200 percent growth in its number of clients just this year.

Arjun Sethi, SFOX co-founder and partner at Tribe Capital, said that SFOX works to boost trading Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term while simultaneously minimizing the impact of high-volume trading on the crypto markets. Sethi sees the lack of market liquidity in the crypto space as "one of the most significant barriers to institutional cryptocurrency adoption."

Akbar Thobhani, CEO of SFOX, echoed Sethi’s sentiments: “we continue to observe sustained and increasing demand from institutions that want to include Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term as part of a diverse portfolio but are reluctant to do so because of uncertainty and volatility,” he said.

You nailed it @dan_pantera @PanteraCapital. Institutional interest is there and institutional capital is on its way! #bitcoin #cryptocurrency #cryptomarket

— SFOX (@SFox) August 17, 2018

Indeed, a growing number of firms are gearing their offerings toward institutional investors who are interested in the crypto space. Van Eck and SolidX have teamed up to create a Bitcoin ETF that is currently awaiting SEC approval; if passed, the fund will be traded at roughly $160,000 per share.