Future Capital Bitcoin Fund (FCBF) has invested US$30 million to launch Australia’s first dedicated bitcoin fund.
The fund is sourcing opportunities globally for companies facilitating payments, exchanges, trading and smart property rights based on Bitcoin and other crypto-currencies.
It is now accepting investments in Australian dollars, US dollars, Renminbi (Chinese currency) and bitcoin. Companies interested in applying for investment from the fund can also send their expression of interest.
Investment manager Holger Arians will manage applicants, with support from fund manager Remco Marcelis.
Investors will be able to gain tax free returns on income and capital accounts, as the fund is conditionally registered as an Early Stage Venture Capital Limited Partnership (ESVCLP) under the Australian Venture Capital Act 2002.
"Australia has low sovereign risk and a globally trusted financial system,” Domenic Carosa, chairman and cofounder of the FCBF, said in a statement.
“We view the emerging Bitcoin ecosystem as an investment opportunity that has transformative potential across a raft of social, technology-based and cultural applications and we see great scope for the broader adoption of Bitcoin and its related applications to redefine the global payment status quo.”
Earlier in this year, Australian Bitcoin ATMs announced the rollout of Australia’s first ever BitAccess ATM Bitcoin Machines where users can withdraw real cash from their Bitcoin accounts and purchase bitcoins for cash. There are no account or usage fees, and a bitcoin can be divided to 8 decimal places so a user can purchase or sell fractions of a bitcoin(s).
LegalVision, an Australian legal service provider, also at the start of this year announced it would allow customers to pay for services using the crypto-currency.
Netscape founder Marc Andreessen, PayPal founder Peter Thiel and Napster founder Sean Parker have all shown their support in Bitcoin currency and together have invested more than US$50 million in Bitcoin related businesses.
However, there have been some issues with Bitcoin. During February to March this year, Tokyo-based Bitcoin exchange Mt. Gox filed for bankruptcy protection after the loss of around $474 million worth of bitcoins. A flaw in the Bitcoin software, allowing hackers to steal the bitcoins, is believed to be the cause of the problem.