Australia gets the first unlisted crypto fund protected by Gemini

Australia gets the first unlisted crypto fund protected by Gemini

  • Gemini will act as custodian for the three “long-only” funds that will pour money into ether, bitcoin and filecoin
  • Holon’s filecoin fund is the first ASIC-registered retail managed investment scheme for digital assets outside of BTC and ETH

Digital venture capital firm and fund manager Holon said Thursday it has become the first unlisted retail bitcoin (BTC), ether (ETH) and filecoin (FIL) funds following a partnership with the Gemini exchange.

The funds will use a traditional investment vehicle known locally as a retail managed investment scheme and invest directly in BTC, ETH and FIL, according to a statement. Managed investment schemes involve several investors contributing to receive a share of the interest and are usually run by a fund manager.

The country’s securities regulator, the Australian Securities and Investments Commission, oversees corporate and financial services as well as funds such as Holons to enforce the law and protect consumers.

Australia is fast becoming a hub for regulated crypto investment schemes. Earlier this year, the country witnessed the launch of its first spot bitcoin and ether ETF – 21Shares Bitcoin ETF (EBTC) and ETFS 21Shares Ethereum ETF (EETH).

While trading activity through these investment vehicles has been slow out of the gate, Australia’s approach is leading the way in the possibility of regulated funds involving crypto. The US, by comparison, is still lagging behind in the approval of a spot ETF, although it has approved a futures-based crypto ETF.

The funds — which will have a minimum of $5,000 (or $2,000 with a $200 per month savings plan) — will provide daily unit pricing, daily redemption and same-day cash settlement and asset purchases, according to the statement.

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The funds are long-term only, with no leverage and no trading, Holon said.

While bitcoin and ether are well-established cryptos, beginners are less likely to be familiar with Filecoin’s native token FIL. The fund manager has called Filcoin the “future of data storage,” allowing users who build on top of their infrastructure to separate themselves from a “handful of companies” entrusted with the world’s data.

Its complementary protocol IPFS has been adopted in DeFi and Web3, but use of IPFS does not require Filecoin.

Gemini gives custody

The Holon Filecoin Fund is the first ASIC-registered retail managed investment scheme for digital assets outside of BTC and ETH, Holon said.

Holon hopes to ride on the success of previous fund managers and will leverage Gemini, via a partnership, to offer custody solutions for all three funds. Under New York banking laws, Gemini is recognized as a trustee and qualified custodian.

“Our partnership with Holon is a great example of Gemini’s commitment to increasing the accessibility of crypto around the world,” said Alex Philips, Senior Vice President of Business Development Asia Pacific at Gemini. “As interest in cryptocurrencies grows, we will continue to build strategic partnerships that enable investors to safely engage in the digital economy through Gemini’s institutional custody.”

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  • Sebastian Sinclair


    Senior Reporter, Asia News Desk

    Sebastian Sinclair is a senior news reporter for Blockworks operating in Southeast Asia. He has experience covering the crypto market as well as certain developments affecting the industry, including regulation, business and M&As. He currently has no cryptocurrencies. Contact Sebastian via e-mail at [email protected]

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