Raiz launches Bitcoin portfolio for loose change to be invested

Fintech micro-investment firm Raiz Invest (ASX: RZI) is set to launch a new investment portfolio for customers and users of the Raiz app to invest loose change in Bitcoin, offering investors with exposure to cryptocurrency. 

The new portfolio, to be named Sapphire, has been specifically developed to meet demand from clientele who have continually expressed interest in cryptocurrency alternative asset classes. 

“The investment objective of the Sapphire portfolio is to provide exposure to Bitcoin in a managed, risk-adjusted way,” said Raiz CEO, George Lucas. 

“The minimum suggested investment timeframe is more than five years. 

“Many of our investors are Millennials, who have time on their side when adopting an investment choice such as the Sapphire portfolio for the long term.” 

Raiz expects Bitcoin to make up 5% of the Sapphire portfolio which will also include international blue chip stocks, corporate debt products and ETFs. 

As the world continues its shift away from traditional money marketplaces, a significant increase in digital transactions has spawned global interest in Bitcoin (BTC) over recent years. Due to its finite nature in which only a set number of BTC are in circulation, and no more can be printed or created. It is the primary digital currency of value, comprising 65.5% of the entire cryptocurrency market according to coinmarketcap.com. 

Since launching in 2016, Raiz has had more than 895,000 users sign up for their micro-investing portfolios which now have more than $404 million under management. Through the Raiz app, users can link to their bank accounts and elect for transactions to be rounded up to the nearest dollar with the change invested in a Raiz portfolio. Eg, a $3.80 cup of coffee is rounded up to $4.00 with 20c being invested. 

 “The Sapphire portfolio is another example of Raiz listening to our customers and giving them choice and control over where they invest, especially as we emerge from the COVID-19 pandemic and they want to re-examine their investment options,” said Lucas. 

Bitcoin reached an all-time high of USD $19,300 in December 2017 but fell significantly over the next 12 months to $4,000 by December 2018. 

Although it is significantly more volatile than traditional equity markets, BTC has emerged well through COVID-19 to be currently trading around $8,700, having started 2020 at $7,100.