CoinJar, one of the largest cryptocurrency exchanges in Australia, has announced the launch of “The CoinJar Digital Currency Fund.” The new product is an index fund targeting wholesale investors–in order to qualify, an investor must have net assets of no less than AUD$2.5 million or have had a gross income of AUD$250,000 for the last two years.
The fund is currently undergoing the process of being registered as a Managed Investment Scheme (MIS).
Jordan Michaelides, institutional head at CoinJar, said that the fund provides a safer way for investors to get involved in the cryptocurrency markets. “Traditionally, an individual investor in cryptocurrency has also been exposed to potential loss through cybercrime,” he said in an official statement. “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.”
Today we launched the CoinJar Digital Currency Fund, an index-style cryptocurrency fund for wholesale investors to access digital currency markets. https://t.co/VMDpn5Q2bG
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Two Separate Classes for Bitcoin and Altcoins
The fund will split its assets into two separate index classes. Investors who choose to put their funds into the ‘Bitcoin Class’ will only be involved in the Bitcoin market; ‘Mixed Class’ investors’ funds will be distributed among four currencies, including XRP, Ethereum, Litecoin, and Bitcoin.
Investors in CoinJar’s Bitcoin Class index will pay 1.3 percent in management fees, while Mixed Class investors will have to fork over 1.8 percent.
First-time investors in the fund are required to contribute no less than $50,000. Current investors can make incremental payments of at least $10,000
Through the fund, “a gateway would be open for [high-volume investors] to invest in Australian Dollar (AUD) and further diversify their portfolios,” Ripple Coin News reported.
New Crypto Investment Products Invite a “Herd of Institutional Investors”
CoinJar’s fund is the latest in a growing number of new offerings for institutional and large-scale investors across the industry. Coinbase launched an index fund earlier this year; IronChain, Bitwise, and others have offered similar products.
Last month, Mike Novogratz said that a “herd of institutional investors” is headed straight for the cryptosphere.