The increase in demand for cryptocurrencies has seen a leading Australian regulated micro-investing app add the Bitcoin investment option for its users.
Raiz Adds Bitcoin Investment Option
Raiz, formerly known as Acorns, has added the Bitcoin investment option to its platform as demand for cryptocurrencies in the country increases. Raiz is a regulated micro-investment app in Australia that allows people to invest in a wide range of assets with a small amount of money.
At the moment, Raiz is one of the leading regulated micro-investment apps in Australia, providing services to thousands of investors in the country. The company announced on Tuesday that it launched a portfolio with a BTC allocation. The new portfolio, dubbed Sapphire, has been in development for the past 18 months. The portfolio aims to provide investors’ with exposure to Bitcoin in a managed, risk-adjusted way.
The CEO of Raiz, George Lucas, stated that while the latest portfolio from the company is high risk, the positive feedback from the customers is a sign that they have an appetite for an investment strategy that allows them to gain exposure to cryptocurrencies.
Raiz, in its post, added that most of their investors are millennials, which means that they are more inclined to push their funds into cryptocurrencies rather than the traditional assets. This follows a report by U.S. brokerage firm Charles Schwab last year, which shows the hunger for Bitcoin and other cryptos amongst millennials.
The Growth of Raiz
Formerly known as Acorns, Raiz broke off from its original U.S. Acorns brand and became an independent Australian company. The broker revealed that it would trade and store the Bitcoin with Gemini, one of the largest crypto exchanges in the United States, founded by the Winklevoss twins. Gemini is currently a New York trust company, and it is regulated by the Department of Financial Services in the state.
Gemini is happy with the partnership with Raiz. According to the exchange’s Managing Director of Operations, Jeanine Hightower-Sellitto, Raiz is boosting its micro-investing app via this latest portfolio as it provides customers with the opportunity to invest in Bitcoin in a regulated and thoughtful manner.
An increasing number of people around the world have been showing interest in Bitcoin and other cryptocurrencies. The halving event of Bitcoin has attracted more people to the industry as the interest in BTC has spiked over the past few months.
The Sapphire portfolio is said to have 5% of the total funds invested in Bitcoin, with the remaining amount invested in ETFs of the U.S, Australia, European, and Asian large-cap equities. The portfolio would invest in money markets and Australian corporate debt. According to the company, Raiz is not a trading tool, which means that Sapphire is a secure way to gain exposure to Bitcoin without the complexities of trading. By investing 5% in Bitcoin, the Sapphire portfolio provides investors with the opportunity to enjoy the potential of Bitcoin while limiting their exposure in a risk-adjusted manner. Despite that, due to the risks associated with cryptocurrency investments, the minimum recommended investment timeframe for this portfolio is over five years, Raiz added. In addition to Raiz’s Sapphire portfolio, the investment platform also offers nine other ETFs (exchange-traded funds), with various asset allocations and risk profiles.