The Vault Bitcoin Fund is the first one in the country, and it will primarily focus on Bitcoin. Vault Digital Funds is behind this new initiative.
First Bitcoin Fund
A local report quoted the co-founder of Vault Digital Funds, Janine Grainger, who stated that
“We see this as a great way for people to get that exposure without having to do all the more complicated and technical parts of it themselves.”
Through the Vault International Bitcoin Fund, investors in New Zealand can add Bitcoin into their asset portfolio without having to own the asset directly. Grainger also added that this Bitcoin fund would offer different features than traditional investment funds. Hence, it will be more suitable for people with long-term investment goals of over ten years.
Given the highly volatile nature of cryptocurrencies, the CEO and co-founder of Vault Digital, Vinnie Gardiner, urged investors who want to be part of this new investment fund to be cautious because of the high risk involved.
“Bitcoin isn’t appropriate for everyone. This is something that people should not be taken lightly,”
Another party that commented on this new fund is Darcy Ungaro, a professional financial advisor.
In his remarks, Ungaro stated that while there was still the ill-perceived notion that Bitcoin was a scam, locals in New Zealand have been showing an increased interest in cryptocurrencies.
Ungaro also stated that over the past three years, he had been actively involved in conversations,
“where people say bitcoin is a scam, or a fad, something to be avoided. But recently, I have been helping more and more people allocate a portion of their portfolio towards it.”
Ungaro further clarified that the main issue associated with bitcoin and cryptocurrencies is not whether Bitcoin is a scam but rather how people handle their crypto holdings. Towards this end, he stated that the new Bitcoin fund would offer a secure way of handling Bitcoin since it will offer custody services.
Bitcoin Investment Funds on the Rise
In terms of adoption, Bitcoin scores highly compared to other cryptocurrencies. Over the past few months, leading global companies have been looking towards Bitcoin to diversify their portfolio. Increased demand from investors has also made asset management and custody firms launch Bitcoin funds.
Bitcoin funds started sprouting in the first month of the second quarter of 2021 when the crypto market was at its peak. During the same month, JPMorgan Chase Co, a leading Wall Street Bank, started looking into Bitcoin investment funds to meet the growing demand.
In August, JPMorgan allowed its wealth management clients to access different cryptocurrency funds. Among these funds was a new Bitcoin fund developed by the NYDIG digital asset company.
The other leading financial institution that has also opened its doors to Bitcoin investment funds is Union Investment, a subsidiary of the DZ Bank Group. The institution announced that it will now allow its private investors to include Bitcoin in its portfolio. However, the clients would only add Bitcoin equivalent to 1-2% of their entire portfolios. Union Investment is expected to launch this new offering in the last quarter of 2021.
The development of these new funds also comes when crypto regulations have become more pronounced.