The company revealed that the Index fund will enable wholesale investors to access the rapidly developing digital currency market.
Australia Gets First Ever Cryptocurrency Fund from Native Bitcoin Exchange Coinjar
On August 2, Coinjar announced the launch of its Coinjar Digital Currency Fund, the first cryptocurrency fund in Australia. Infact, the company revealed that the platform was developed majorly for large-scale investors to get access to the cryptocurrency markets.
The company has classified its digital fund into the two classes,;
- Bitcoin Class – it introduces investors to bitcoin only with tools that allow price analysis of Bitcoin.
- The second class of the fund combines the top four cryptocurrencies. These include bitcoin(BTC), ethereum(ETH), ripple(XRP) and litecoin(LTC) tracking the market cap-weighted price dynamics of these cryptocurrencies.
All these two classes of the index fund allow large-scale investors to conveniently invest with the native Australian dollars. However, the company further stated that the Coinjar Digital Currency Fund does not charge investors any money for signing up. They’ll also free from any special contribution or performance fees. Furthermore, the company charges an annual management fee of 1.3% of the investor’s portfolio for the exclusive bitcoin class. Also, 1.8% for the mixed class in additional normal operation charges.
The Cryptocurrency Investment Climate
It is somewhat tricky to invest in cryptocurrencies given the very limited investment options for large-scale investors. By developing this cryptocurrency index fund Coinjar takes up the role of managing and securing assets on behalf of investors. Additionally, the platform secures cryptocurrency assets in digital multisignature wallets enhanced with additional layers of security to provided the maximum safety to investors.
Nevertheless, this cryptocurrency index fund launch follows the launch of CoinJar Cryptocurrency Exchange which is a top contender for Australia’s fastest cryptocurrency trading exchange.
“There are some risks associated with investing in cryptocurrency, Normally investors in cryptocurrency are exposed to high changes of losses through cybercrime. CoinJar Digital Currency Fund is built to handle the custody risks involve, make the investment process easier and extend industry best practice in security for large-scale investors ” Revealed Jordan Michaelides, Head of institutional at CoinJar.
At the meantime, Coinjar cryptocurrency fund is only restricted for large-scale investors. Specificallty, investors with net assets of at least AUD$2.5 Million or a gross income of at least AUD$250,000 within the last two years. This restriction is similar to what the SEC of the US requires for an individual to invest in an ICO. Accordingly, first time investors here require a minimum of $50,000 as an initial investment. This will also include a subsequent increment of $10,000 afterward.
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