Passive Bitcoin Fund
The Magnet Foundation Trust (MFT) provides wholesale investors with simple, low-cost and secure investment exposure to Bitcoin (BTC).
MFT is structured as a traditional investment vehicle, an Australian Unit Trust. A unit trust structure allows investors to avoid the typical challenges associated with the buying, selling, safekeeping and tax reporting of BTC.
| Investment Objective | Units track the price of BTC, less fees |
|---|---|
| Inception Date | 2-Nov-2020 |
| Unit Issuance | Daily |
| Management Fee | 0.91% annually (excl. GST) |
| Minimum Investment | $250,000 |
| Performance Fee | 0% |
| Custodian | Coinbase |
| Additional Features | Monthly reporting and market commentary, manager support, annual tax reporting |
| Investor Qualifications | Wholesale Investors only |
| AFLS CAR | 001258408 |
Institutional Demand
Spot BTC ETFs have been the most successful financial products measured by AUM and flows. These flows validate the demand and positive perception of BTC in institutional circles.
Programmatic Disinflation
Bitcoin's 4th halving (Apr-2024) structurally rebalanced the Supply vs Demand dynamics of BTC. This has historically resulted in positive price pressures.
Improving Regulatory Environment
The leading US Presidential candidate, Trump, is very pro crypto. Additionally, the historically harsh SEC continues to lose regulatory battles in US courts of law.
Finite Supply
Bitcoin's limited supply of 21m prevents gradual debasement of purchasing power - a stark contrast to the exponentially increasing amount of fiat currency in circulation.
Hedge Against Fiat Economy
The fiat monetary system is in unchartered territory, with historically high levels base money (8.5x increase in the 21st century alone) and the average debt to GDP level of the G7 countries at 129%.
Hedge Against Centralised Banking Risks
Bitcoin was created in response to the centralised banking failures of the 2008/09 global financial crisis. Should banking sector issues arise again like they did in March '23 Bitcoin react positively again.
US Debt to GDP (%)
US M2 Money Supply (US$Bn)
Spot Pricing
Invest and redeem at the daily AUD.BTC spot price, with no discount to NAV
Licensed Manager
Magnet Capital is AFSL registered, and based in Sydney, Australia
Track Record
MFT launched November 2020. Magnet Capital has been operating since November 2017.
Liquidity
Magnet transacts in OTC markets with significantly higher volume than Australian exchanges
Introduction to Digital Assets
Introduction to Digital Assets, Cryptocurrency, NFTs, Bitcoin, Ethereum and DeFi for beginners
Insights
25 Jul 2022
Ethereum - Crypto's Infrastructure
Ethereum is the core infrastructure that drives the creation and operation of decentralised, blockchain-enabled applications
Ethereum
16 Jan 2023