CoinJar, an Australian bitcoin exchange platform has introduced the country’s first cryptocurrency index fund after New York-based Grayscale investment fund. The new platform is accessible to wholesale investors which claim to enable hassle free buying and selling of bitcoins and allows merchants to accept bitcoin payments. It caters for online businesses to accept bitcoins in various categories such as bitcoin tools, brick, and mortar, charities and non-profits, electronics and computers, fashion and apparel, gifts, health, and beauty.
The Fund has categorized into two classes. The first, Bitcoin Class, exclusively provides investors with exposure to bitcoin (BTC). The second, Mixed Class, which provides the privilege to track the performance and price movements of four of the six prime cryptocurrencies: bitcoin, ethereum (ETH), ripple (XRP), and litecoin (LTC).
Both classes of the Fund will offer wholesale investors of high net worth who has attained the certification from the authorities and have minimum AUD$2.5 million or a gross income of AUD$250,000 of the last consecutive two years. The platform has the potential to provide an easy way of investment with Australian Dollars, which may provide diversification to traditional asset classes.
Jordan Michaelides, head of institutional at CoinJar asserted:
“Investing in cryptocurrency carries certain risks and can be an unnecessarily complex process. Traditionally, an individual investor in cryptocurrency has also been exposed to potential loss through cybercrime. We are launching the CoinJar Digital Currency Fund to handle the custody risks, simplify the investment process and provide industry best practice in security for wholesale investors.”
Although, The CoinJar Digital Currency Fund has no establishment costs, contribution fees or performance fees. It carries an Annual Management fee of 1.3% per annum for Bitcoin Class and 1.8% per annum for Mixed Class plus normal operating costs. First-time investors have preconditioned to provide a minimum of $50,000 to the fund, while current investors can make subsequent investments in increments of at least $10,000.
However, since 2013, The New York-based Grayscale can be considered the leader in this space who initiated the process and launched the Bitcoin Investment Trust (OTC: GBTC) along with a variety of other investment funds in the series. Two of these, GBTC and the Ethereum Classic Investment Trust (OTC: ETCG) can now be purchased by retail investors on the secondary market.
The introduction of the CoinJar Digital Currency Fund follows the launch of CoinJar Exchange, Australia’s fastest cryptocurrency trading exchange. The launch of both products in such a short period is representing CoinJar’s persistent business expansion and diversification within the Australian market.