Australian cryptocurrency exchange CoinJar has launched the CoinJar Digital Currency Fund, the country’s first cryptocurrency index fund available to wholesale and accredited investors.
CoinJar announced the new index fund in an August 2 blog post, explaining that the fund “takes on the management and security of the assets on behalf of the investor” while also securing the digital assets “in multi-signature digital wallets which provide an additional layer of security.”
According to the blog post, the Digital Currency Fund has two classes. The first, Bitcoin Class, “provides exposure to Bitcoin (BTC) only.” Mixed Class, the second fund, “aims to track the performance of four digital currencies, weighted by fixed supply – Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and Litecoin (LTC).”
Both classes offer wholesale investors “a convenient way to invest with Australian Dollars,” which “may provide diversification to traditional asset classes.” Although the CoinJar Digital Currency Fund has no establishment costs, contribution fees or performance fees, the Bitcoin Class carries an annual management fee of 1.3 percent while Mixed Class costs 1.8 percent per annum, plus normal operating costs.
Currently, the fund only accepts wholesale Australian investors, or high net worth investors who have obtained an accountant’s certification proving they have net assets of at least AUD$2.5 million or a gross income of AUD$250,000 for the previous two years. This investor category is similar to the “accredited investor” certification required for US investors to invest in cryptocurrency funds and many initial coin offerings (ICOs).
Huobi, one of the three biggest cryptocurrency exchanges in the world by 24-hour trading volume, has also rolled out a cryptocurrency index fund called HB10, which was added to the Bloomberg Terminal in June.