Cryptocurrency Index Fund Launched By Crypto Exchange CoinJarbr>
Australia-based crypto platform CoinJar is launching a new cryptocurrency index fund targeting wholesale investor.
Founded in 2013, CoinJar enables the buying and selling of cryptocurrencies and allows merchants to accept crypto payments. It allows online businesses to accept cryptocurrencies in various categories such as bitcoin tools, brick and mortar, charities and non-profits, electronics and computers, fashion and apparel, among others. It is registered with the Australian Transaction Reports and Analysis Center (AUSTRAC), the country’s financial intelligence agency.
Called CoinJar Digital Currency Fund, the fund will allow wholesale investors to access cryptocurrency markets with AUD$50,000 ($37,000 USD) minimum investment. The fund offers medium to long-term exposure in digital currencies without the need for investors to self-manage custody and security.
“Professional and sophisticated investors (wholesale clients) with a medium to long-term view of the digital currency market, and a higher tolerance for risks associated with market volatility,” the company said. “The fund is for wholesale investors only.”
The fund, which is currently undergoing the process of being registered as a Managed Investment Scheme (MIS), will have two classes: Bitcoin Class, which provides exposure to bitcoin (BTC) only, and Mixed Class, which aims to track the performance of four cryptocurrencies, weighted by fixed supply – bitcoin (BTC), ethereum (ETH), Ripple (XRP), and Litecoin (LTC).
In order to qualify, an investor must have net assets of no less than AUD$2.5 million ($1.8M USD) or have had a gross income of AUD$250,000 ($185,000 USD) for the last two years. Management fees are 1.3 percent per annum for Bitcoin Class and 1.8 percent per annum for Mixed Class plus normal operating costs.
“Traditionally, an individual investor in cryptocurrency has also been exposed to potential loss through cybercrime,” said Jordan Michaelides, institutional head at CoinJar. “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.”