Investing spare change in bitcoin - Australian firm launching a fund with Gemini as the custodian

Raiz Invest, Australia-based micro-investing platform that allows users to invest spare change from everyday purchases, is launching a fund with bitcoin exposure.

George Lucas, CEO of Raiz Invest, told The Block on Monday that the fund will have a 5% target asset allocation to bitcoin (BTC), and the rest 95% into stocks, bonds and cash, among other assets.

“In this asset allocation, bitcoin is treated as similar to an alternative asset class,” Lucas told The Block, adding that the fund is expected to launch in June of this year.

Gemini will act as the custodian of the fund, said Lucas. He added that more details would be revealed when the fund is launched.

The Block has reached out to Gemini to know more about its deal with Raiz and will update this story if we hear back.

Raiz has received approval from the Australian Securities and Investment Commission (ASIC) for the fund, local news outlet AFR reported Monday. The ASIC nod was the last legal approval Raiz needed, per the report.

Australian Securities Exchange (ASX)-listed Raiz has around AU$445 million (~US$306 million) in funds under management (FUM) and 211,657 active customers, according to its December filing.

“Total FUM, at $444.7 million, is edging towards the half-billion-dollar mark, ensuring we finished 2019 on a high note as well as setting the scene for another good year in 2020,” said Lucas in the filing.

Raiz currently offers six portfolios, including "conservative" and "aggressive" asset allocations. The minimum investment amount via its apps is AU$5 (~US$3.5).

Raiz is not the only app that will allow investing spare change into bitcoin. Bundil, Shakepay, Roundlyx and Donut all offer such options, among other apps. ASX-listed DigitalX also offers a bitcoin fund, aimed at professional investors.