Raiz Launches Bitcoin Fund: A New Frontier in Australian Micro-Investment

Raiz Takes a New Step in Crypto

Australian micro-investment platform Raiz is making headlines as it prepares to introduce Bitcoin (BTC) fund options for its users. As reported by the Australian Financial Review, Raiz has triumphantly cleared its final legal hurdle with the Australian Securities and Investment Commission (ASIC), marking a significant milestone in its journey to integrate cryptocurrency into its investment offerings.

What is Raiz?

Raiz operates similarly to the American platform Acorns, by rounding up users’ spare change from everyday purchases and investing it into various products, primarily composed of exchange traded funds (ETFs). With approximately 300,000 registered accounts under its belt, Raiz is slowly reshaping the investment landscape in Australia.

The Game Plan for Bitcoin

Rumors have swirled that Raiz was keen to include Bitcoin in its service offerings, and their persistence paid off. The newly approved Bitcoin retail fund is set to allocate only 5% to direct Bitcoin exposure, while the remainder will be invested in ETFs. This cautious approach strikes a balance between capitalizing on the hype around Bitcoin and maintaining regulatory compliance.

Current State of Australia’s Regulatory Landscape

Australia has historically treaded lightly when it comes to cryptocurrency regulation. ASIC has taken a meticulous stance, ensuring that all crypto-related businesses adhere to stringent licensing and regulatory requirements. In a previous exposé by Cointelegraph, Australian regulators released comprehensive guidelines emphasizing the necessity for mining operations, exchanges, and initial coin offerings to comply with Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations.

Concerns from the Authorities

Skepticism surrounding digital currencies lingers within the upper echelons of the government. The Australian Central Bank has expressed doubts about the potential of cryptocurrencies to replace the Australian dollar, mainly due to concerns over usability and scalability. Furthermore, government officials have raised alarms about cryptocurrencies being used to obscure financial activities, potentially aiding illicit operations. Following such statements, a higher level of scrutiny from financial authorities is anticipated.

The Road Ahead

As Raiz prepares to implement these new Bitcoin fund options, investors will be watching closely to see how this initiative pans out in the first half of 2020. Will it revolutionize the investment experience for Australians, or will regulatory hurdles stifle its growth? Only time will tell, but for now, one thing’s for sure: Raiz is daring to venture where few Australian firms have gone before.