Bitcoin-only investment fund debuts in New Zealand
New Zealand has launched its first retail-oriented Bitcoin investment fund. The product from Vault Digital Funds will provide investors in the country with a new fund called Vault International Bitcoin Fund.
While commenting on the development, the co-Founder of Vault Digital Funds Janine Grainger explained that investors would have the opportunity to add Bitcoin to their portfolio without having to own it directly through the fund.
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.
Grainger noted that the fund presents a different focus from other traditional investment funds, further adding that it offers clients more of a long-term investment plan.
Meanwhile, Chief Executive and co-founder of Vault Digital Funds Vinnie Gardiner warned investors of the potential risks associated with the cryptocurrency market.
Bitcoin isn’t appropriate for everyone. This is something that people should not be taking lightly.
A few others aired their views on the matter. The host of the NZ Everyday Investor and authorized financial advisor Darcy Ungaro opined that locals have been showing an increased interest in cryptocurrencies recently despite the assumptions that Bitcoin is a “scam or a fad.”
Over the past three years, I have been having 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.
One of Bitcoin’s biggest risks arguably lies in how people hold and store their crypto holdings and not whether it is a scam. Ungaro stated that the Vault International Bitcoin Fund would offer investors the necessary level of security “because it takes care of all the custody issues.”
Many institutions have moved to embrace the flagship cryptocurrency by either offering crypto-related services to their clients or by adding it to their portfolios. For instance, banking giant JPMorgan Chase & Co launched a crypto investment product back in March, after years of predicting the demise of Bitcoin. Other banking giants like Goldman Sachs and Morgan Stanley have also joined the Bitcoin bandwagon.