Alternatively, a number of micro investing apps in Australia offer exposure to cryptocurrencies through a managed investment program. ASX-listed Raiz Invest has an option that includes a maximum allocation of 5% bitcoin, while crypto-focused micro-investor Bamboo offers portfolios comprised of bitcoin, ether, gold and gold. ‘money. These are for low balance newbie investors and customers can put in a few dollars at a time if they wish.
But investors who meet the sophisticated and large investor test (those with more than $2.5 million in net assets or earning more than $250,000 a year) can access a number of traditional managed funds. invested in a range of cryptocurrencies. There are a growing number of professional crypto investment firms in Australia. They would normally charge relatively high fees, but have a duty to act in the best interests of unitholders, among a series of legal obligations.
Australian titles & Investments Commission, the corporate regulator, has given its blessing to exchange-traded funds (ETFs) invested in bitcoin and ether. These would be made available to retail investors and a number of fund managers have applied to list these products on the ASX or rival Cboe Australia, but have yet to start trading.
Investors can also inadvertently gain market exposure by investing in stocks that hold cryptocurrencies on their balance sheet or are involved in the mining and distribution of crypto tokens. A number of local ETFs offer exposure to these stocks.
Whichever method you choose, experts suggest “start small and learn by doing.” Others say you shouldn’t invest in crypto assets at all, given the level of risk and volatility in the market.
Investors should consider their objectives, level of risk tolerance and consider obtaining professional financial advice.
While the latter has its own complexities, many advisors are unable to properly discuss or recommend crypto assets under the terms of their licensing and professional indemnity agreements.
But ask them anyway, or do your own research.