Australian Cryptocurrency Update

Arrano Capital adds cryptocurrency fund for Australian investors

Sydney multi-boutique, Arrano Capital, has signed a passive bitcoin fund for Australian institutional investors, distributed by Mantis Funds. The fund is Caymans domiciled with a subscription fee of 1 per cent and a management fee of 1 per cent annually.

Arrano is the blockchain arm of Venture Smart Asia Limited licensed by Hong Kong’s Securities and Future Commissions to manage virtual asset funds. Mantis Funds said the Arrano fund is the only product available to Australian investors that meets wholesale investor due diligence requirements.

Carnegie launching digital asset fund

Investment banker Mark Carnegie is warning Australian superannuation funds they should be jumping aboard the cryptocurrency train, ahead of his new digital assets fund launch. Carnegie told Financial Standard that superannuation funds are hesitant to invest in cryptocurrency because they think it’s a wobbly bubble, but he says they will eventually have to get on board.

The MHC Digital Asset Fund is being launched shortly in partnership with blockchain expert Serge Sergienko. The fund is aiming for a 30 per cent return after fees in a multi-investment asymmetrical strategy.

The fund is open to wholesale investors with a minimum $50,000 investment, with management fees of 2 per cent and a performance fee of 25 per cent of the return with conditions.

The allocation is 45-75 per cent allocation to cryptocurrencies such as Bitcoin and Ethereum, 30-60 per cent stablecoin denominated decentralised finance (DeFi) strategies, 10-15 per cent early entry tokens and/or direct equity in blockchain business and up to 15 per cent DeFi optimisation.

State Street partnering with start-up to build digital currency trading platform

State Street’s Currenex currency trading business is working in partnership with Puremarkets to provide trading infrastructure for the Pure Digital platform it’s building, with launch expected in mid-2021. Pure Digital will have multiple custodians, with institutional participants able to leverage their preferred digital asset custody solutions, managing risk via a smart custody routing mechanism.

The buy-side can use their current prime bank/custodial relationships and infrastructure. The platform will use FX-industry standard APIs and best practice execution to minimise the tech cost for participants.