Kiwi bitcoin fund set to launch in Australia
The Vault International Bitcoin Fund that offers investors tax-efficient access to bitcoin is set to launch in Australia under the trans-Tasman regulatory regime, after its release in New Zealand in September.
The fund is the first regulated investment vehicle in New Zealand to provide full exposure to the expanding digital asset class. Vinnie Gardiner, co-founder of Vault, said the fund will appeal to Australian investors and platforms looking for more structured ways to access bitcoin rather than buying on unregulated, offshore-based exchanges.
“We can see there’s a lot of pent-up demand for bitcoin and other digital assets from a wide variety of investors on both sides of the Tasman but many are naturally concerned about the regulatory and security risks involved in dealing with exchanges,” he said.
“Vault solves both those problems by investing in well-established North American-based bitcoin funds via a retail vehicle regulated under NZ financial markets legislation that can also extend to the Australian regulatory environment.”
Gardiner said Vault seeks to offer the fund in Australia under the Trans-Tasman Mutual Recognition regime (TTMR), which was established in 2008 to create a single market for financial products across both countries.
“Australian fund managers have issued hundreds of products in NZ through the TTMR rules but few have come across the Tasman the other way,” he said.
“We think Vault could be a notable exception.”
Gardiner also said Vault would suit direct-to-consumer and adviser-based Australian investment platforms because it caters to the rising demand for bitcoin from both wholesale and retail clients, including self-managed superannuation fund (SMSF) trustees.
Since going live in September, Vault has accrued almost NZ$5 million in assets under management (AUM) on behalf of around 1,000 investors. The fund has also returned over 30% to date, reflecting the rapid increase in the bitcoin price over the last month.
“Cryptocurrency is undeniably a volatile asset class,” Gardiner said. “Vault does not remove that volatility but for investors who understand the risks we can make the ride more comfortable.”