Australian investment app Raiz Invest now offers Bitcoin exposure


Raiz Invest, one of the biggest micro-investing platforms in Australia, has announced the launch of its new investment portfolio that offers Bitcoin (BTC) exposure.

According to Raiz’s press release, the new portfolio named “Sapphire” was designed to respond to the shifting preferences of investors on the asset classes they would be willing to expose themselves to.

Growing interest in cryptocurrencies and the shifting preferences of different investors amid uncertain markets have indeed reshaped investment strategies.

Bitcoin exposure limited to five percent

Raiz’s Sapphire will be its seventh investment portfolio that finally includes BTC, an “alternative asset class,” among other large-cap investments. The portfolio will limit its target allocation for BTC to five percent.

Apart from BTC, 95% of other Sapphire investments will be on U.S., European, Australian, and Asian large-cap stocks.

Among other additions are investments on Australian corporate debt and money markets through partnerships with exchange-traded funds (ETF).

George Lucas, chief executive officer of Raiz, said that they found many of their customers have enough risk-appetite to take on the investment that Sapphire is offering.

Lucas adds that it was that feedback that led them to design Sapphire’s BTC-exposed portfolio. He adds:

“The investment objective of the Sapphire portfolio is to provide exposure to Bitcoin in a managed, risk-adjusted way. The minimum suggested investment timeframe is more than five years.”

Sapphire’s target market are millenials

Lucas said that Sapphire’s target market are millennials “who have time on their side” for a long-term investment.

Lucas referred to a report made by a U.S. stockbroker back in December 2019, which revealed that millennials are now more inclined to “put money into crypto assets.”

Raiz to trade, store BTC with Gemini crypto exchange

According to the press release, they will trade and store BTC with Gemini, a cryptocurrency exchange founded by the Winklevoss twins. Gemini is considered by many as one among the most secure and reliable cryptocurrency exchanges and custodians worldwide.

Jeanine Hightower-Sellitto, managing director of operations at Gemini said:

“Raiz is advancing micro-investments via its new portfolio that provides customers an opportunity to invest in Bitcoin in a thoughtful, regulated manner.”

Gemini is a cryptocurrency exchange based in New York and currently regulated by the New York State Department of Financial Services.

It was back in January this year that Raiz was given the green light to operate a retail BTC fund. Raiz, formerly known as Acorns, only offered six different portfolios to users with easily adjustable investments according to their risk appetites.

With Raiz’s new portfolio that offers BTC exposure, they can potentially tap into a younger market who would be more willing to fund crypto investments.

Images courtesy of goodegg0843/Flickr, OTA Photos/Flickr, Ken Teegardin/Flickr

Errol Villorente

Covering topics on technology, finance, and cryptocurrency. Believes in the promise that lies in the blockchain and cryptocurrency to change the international financial landscape.

Published by
Errol Villorente

Recent Posts

‘You’re the best!’ Your belief in your kids’ academic ability can actually improve their grades

We have all met the parent who thinks their kid is the next Picasso or…

29 mins ago

It takes a village: why sending your kid to childcare isn’t ‘outsourcing parenting’

A Coalition party room meeting this week debated the A$1.7 billion childcare package announced in…

53 mins ago

The case for a Tasmanian AFL team, from an economist’s point of view

No one did a cost-benefit analysis before accepting Tasmania into the Commonwealth. Should the Australian…

1 hour ago