Frequently Asked Questions
The Bitcoin ETF PIE Fund provides Kiwis with the ability to invest in bitcoin in a simple, smart and trusted way. The Fund invests in exchange traded funds (ETFs) listed on overseas sharemarkets that hold bitcoin.
Investing in Bitcoin through the Bitcoin ETF PIE Fund is:
- Simple: You buy a unit in a PIE fund (not bitcoin directly),
- Smart: you invest in a tax efficient structure where the maximum tax you pay is 28%, and
- Trusted: you invest in a regulated investment product - a managed investment scheme.
In addition, investing in Bitcoin through the Bitcoin ETF PIE Fund is:
- Easier than holding bitcoin directly - when you buy and hold bitcoin directly you need to make your own custody or safekeeping arrangements. When buying units in the Fund the underlying bitcoin custody is managed within the underlying ETF fund investments.
- Taxed under the Fair Dividend Rate ("FDR") regime - this is achieved by investing in one or more offshore domiciled funds listed on foreign share markets.
- Professionally managed - the investment manager, Raise Investments Limited, is responsible for identifying underlying assets that best achieve Bitcoin ETF PIE Fund's investment strategy. Raise monitors the ability of the underlying assets to continue to achieve the Fund's investment strategy over time and considers whether any other assets might be preferable. This includes selecting and managing the portfolio of underlying funds.
No. As with all investments, there will be risks involved which are detailed in the disclosure material. Your money will be used to purchase units in the Bitcoin ETF PIE Fund, which in turn purchases shares in the underlying ETF funds. Adminis as Custodian holds the shares in the underlying EFT funds on behalf of the Fund's Supervisor, which is the Public Trust. But your money is not guaranteed. Please note the value of your units can fluctuate significantly, as the value of bitcoin changes. We would suggest speaking to your financial advisor before deciding whether to invest.
The minimum initial investment is $1,000 as per the PDS. But The minimum investment amount may be lower via investment platforms, so please refer to the InvestNow for client terms and conditions (the current minimum is $250 for a one off investment or $50 per month).
You may request redemption of some or all of your investment at any time. You can make a redemption request via the investment platform through which you purchased units in the Bitcoin ETF PIE Fund.
Payment will normally be made within 5 business days the redemption request from you being received.
The Bitcoin ETF PIE Fund may suspend or defer redemptions if the manager determines this is in the best interests of investors generally. They may also suspend redemptions from the Fund in certain circumstances set out in the trust deed governing the scheme. Including if the manager, in good faith, forms the opinion that it is not practicable or would be materially prejudicial to the interests of the Fund's investors to realise assets or borrow to permit unit redemptions.
A redemption of all or part of your investment in the Bitcoin ETF PIE Fund, will be at the unit price on the day in which your redemption request is processed, adjusted for the applicable sell spread. Note that redemptions are only processed at the end of day prices and you are unable to trade units in the Fund intra-day.
The Bitcoin ETF PIE Fund and the Manager (FundRock) reserves the right to refuse a redemption request for less than 500 units or a redemption request that would result in you holding less than 1,000 units (except where all of your units are to be redeemed).
Units in the Bitcoin ETF PIE Fund are denominated in New Zealand dollars (NZD), whereas the underlying assets are denominated in United States dollars (USD) or Canadian dollars (CAD). Vault takes care of the exchange rate process within the Fund and denominates the Bitcoin ETF PIE Fund's units in NZD, but it does not specifically hedge the foreign exchange exposure.
You will be charged fees for investing in Bitcoin ETF PIE, which are reflected in the unit price.
The annual fund charges currently total 0.95% per annum incl. GST - which includes all normal day-to-day fund costs and when you enter or leave Fund, any buy or sell spreads applicable at that time will be a cost to you. The buy spread is added to the Unit price on entry to the Fund, and the sell spread is deducted from the Unit price on exit from the Fund. The buy/sell spreads belong to the Fund and are not fees paid to us or the investment manager. The purpose of buy/sell spreads is to make sure that any transaction costs incurred as a result of an investor entering or leaving the Fund are borne by that investor, and not by other investors in the Fund. There is no GST charged on buy/sell spreads. We estimate buy/sell spreads to be approximately 0.25% in normal trading conditions.
Your selected investment platform or financial advisors may also charge additional fees. These will be notified by them at the time of purchase.
You can work out your PIR here, under the "What is my prescribed investor rate" section.
If you are unsure of your PIR, we recommend you seek professional advice or contact the Inland Revenue Department.
The Product Disclosure Statement is available from the following:
For any further enquiries, please contact FundRock, contact@investnow.co.nz, or contact@raiseinvestments.co.nz.
Yes - If you are a company, you can invest via one of our partners InvestNow. If you are not a current customer, you will need to sign up via their website. Please allow 2-3 business days for the onboarding process to be completed.
The Bitcoin ETF PIE Fund is now available on www.investnow.co.nz or through your investment adviser. If your adviser is unable to access the Fund for you, tell them to contact Raise Investments Limited.
Who is involved?
- FundRock NZ Limited as Manager and Issuer
- Raise Investments Limited as Investment Manager
- Public Trust as Supervisor
- Adminis NZ Limited as Custodian and Administration Manager
- FundRock NZ Limited as Manager and Issuer
- Raise Investment Management Limited as Investment Manager
- Public Trust as Supervisor
- Adminis NZ Limited as Custodian and Administration Manager
FundRock NZ Limited (previously Implemented Investment Solutions) was established in 2011 and licensed as a manager of registered schemes in 2015. Further information on FundRock NZ Limited can be found a www.fundrock.com/fundrock-new-zealand.
Public Trust are an independent Crown Entity, that was established in 1873. They were licensed as a supervisor of a registered scheme in 2018. Further information on www.publictrust.co.nz.
Please refer to "An Introduction To Bitcoin" on our website. We would strongly suggest doing some research on your own, and always seek financial advice before investing.
The returns of the Fund are measured against the market index described in the Statement of Investment Policy and Objectives (which is on this website). More information about the S&P Bitcoin Index can be found on their website.
There are considerable risks associated with investing in the Bitcoin ETF PIE Fund, which includes the partial or total loss of invested funds.
The potential risks are outlined in the Fund's disclosure material on this website. We also recommend you read the Introductory Guide to Bitcoin which is on this website and provides additional important information on this asset type.
To help you clarify your own attitude to risk, you can seek financial advice or work out your risk profile at www.sorted.org.nz/tools/investor-kickstarter
You can invest via the InvestNow Investment platforms. If you are not a current customer, you will need to sign up via their website. Please allow 2-3 business days for the onboarding process to be completed.
The Bitcoin ETF PIE Fund is now available on www.investnow.co.nz.
Raise Investments Limited does not accept customer orders on this website.
If you wish to invest in the Bitcoin ETF PIE Fund, you will first need to onboard as a customer with InvestNow or talk to your investment adviser.
You can then create an order to purchase units in the Bitcoin ETF PIE Fund via one of these investment platforms.
Payment is only accepted in New Zealand dollars.
The Bitcoin ETF PIE Fund is now available from www.investnow.co.nz.
The price of the Bitcoin ETF PIE Fund is determined by the closing price of the underlying assets in the location the assets are listed. As these underlying assets are listed on the US and Canadian Stock Exchanges, closing time is generally at 8am NZT on the following day.
Generally, orders placed and paid for on a Monday before 12pm, are purchased by close of business on the US and Canadian Exchanges on Tuesday 8am NZT.
When you purchase Bitcoin ETF PIE Fund units, you will be notified of the price and quantity of units issued.
Please note that the price of bitcoin and as result the unit price of the Bitcoin ETF PIE Fund Fund is extremely volatile and subject to large intra-day movements. Like other managed funds, investors can only buy and sell units in the Fund once per day (at the previous day's close). This means that you will not be able to transact in real time in reaction to underlying Bitcoin price movements. Therefore, an investment in the Bitcoin ETF PIE Fund should be considered as part of a properly diversified investment portfolio with long-term investment horizon.
No. As units in the Bitcoin ETF PIE Fund are denominated in NZ dollars and underlying assets are likely to be in US dollars or Canadian dollars, we have made the decision to leave the foreign currency exposure unhedged. This is so an investment in the Bitcoin ETF PIE Fund behaves as much like a direct investment in bitcoin as possible.
The Bitcoin ETF PIE Fund is a portfolio investment entity ("PIE"). The Fund invests in Exchange Traded Funds ("ETFs) which are listed in the US and Canada, which in turn invest in bitcoin. The ETF's that the Fund invests in are taxed as global shares.
The Fund's investments are taxed under the Fair Dividend Rate ("FDR") rules at a deemed rate of 5%, which in turn is taxed at your prescribed investor rate ("PIR") rate. The PIR is capped at 28%.
Under these rules the maximum tax paid in any given year is approximately 1.4% per annum.
This is calculated as FDR at 5% x PIR at 28% = 1.4% tax per annum.
Taxes are paid by the Bitcoin ETF PIE Fund on your behalf, based on the PIR and the IRD number you have provided. To determine your PIR, go to IRD's guide here.
See the section of the Product Disclosure Statement called "What taxes will you pay?" for more information.
You are able to place an order for the Bitcoin ETF PIE Fund through our retail distribution partners InvestNow, at any time of the day. However, applications and redemption cut off is 12pm NZ time (Monday to Friday, excluding national public holidays). Orders received after this cut off will be processed the following business day.
The Bitcoin ETF PIE Fund is available now on www.investnow.co.nz.
Yes - if you are a trust you can invest via InvestNow or your investment adviser. If you are not a current customer of InvestNow you will need to sign up via their website here. Please allow 2-3 business days for the onboarding process to be completed. If your adviser is unable to provide you with access to the Fund, tell them to contact Raise.
We are not currently accepting applications from foreign investors.
If you are a foreign investor and you think the Bitcoin ETF PIE Fund is right for you, please contact us to express your interest, and we will advise you of an appropriate onboarding partner when timing allows.
Yes. The Fund is audited.
Raise Investments Limited is registered on the Financial Service Providers Register to provide investment manager services and is responsible for making underlying investment decisions for the Bitcoin ETF PIE Fund. Further information on Raise can be found at www.bitcoinpiefund.co.nz
Adminis have been providing technology-driven solutions for fund managers and other investors since 2013. Further information on Adminis can be found at https://www.adminis.co.nz/about-us.
No, you do not need a private key. The Fund's assets are held in custody by Adminis NZ and units in the Fund are maintained on a unit registry, also by Adminis NZ. You do not need to make your own custody or safekeeping arrangements.