An Australian headquartered firm has sunk $US30 million into Australia's first dedicated bitcoin investment fund.
The Future Capital Bitcoin Fund (FCBF) will invest in companies that are leveraging services based on bitcoin and other crypto-currencies.
Bitcoin is a digital currency or cypto-currency, which is not backed by any countries central bank or currency.
Led by digital entrepreneur, investor and fund manager, Domenic Carosa, the fund will source opportunities globally for companies facilitating payments, exchanges, trading and smart property rights based around the bitcoin digital currency ecosystem.
Carosa said bitcoin had the potential to dramatically alter the manner in which transactions took place across the globe.
"The power to create new modes of financial connectivity, seamlessly across borders,” said Mr Carosa, who is the chairman and co-founder of the FCBF.
The fund, which is operational from May, is currently accepting payments from investors in AUD, USD, RMB and Bitcoin (BTC), and is also open to receiving expressions of interest from companies interested in applying for investment from the fund.
According to a company statement, the team has been involved with more than 100 start-up companies and four previous funds, managing and raising more than $150 million in investment, growing businesses from $0 to $100m in revenue and listing them.
Carosa said Australia had low sovereign risk and a globally trusted financial system.
"This is a very exciting opportunity for global investors to participate in the Bitcoin ecosystem via Future Capital’s Bitcoin Fund," he said.
Applicants to the fund will be managed by investment manager, Holger Arians, and supported by fund manager, Remco Marcelis.
Arians said the concept of a global crypto-currency was probably the most disruptive innovation he had seen in the past 10 years.
"I believe that bitcoins will change the way we live, travel and do business.”
The FCBF Fund is conditionally registered as an Early Stage Venture Capital Limited Partnership (ESVCLP) under the Australian Venture Capital Act 2002, which will provide investors in the FCBF fully tax free returns, on income and capital account.
Carosa said he viewed the bitcoin ecosystem as an investment opportunity that had transformative potential across a raft of social, technology-based and cultural applications.
"We see great scope for the broader adoption of bitcoin and its related applications to redefine the global payment status quo," he said.
The rise in popularity of bitcoin over the last three to five years is due in large part to the growing ecosystem of companies that are both supporting it and looking to enable opportunities in and around the core currency and protocol.
“We are already actively participating in the evolving bitcoin space and we see it is at an inflection point and ready for seasoned investors to assist in bringing financial and entrepreneurial experience to this market,” Arians said.
Arians will attend the Global Bitcoin Summit in Beijing from May 10-12 and Carosa will be attending the European Bitcoin Conference in Amsterdam from May 15-17 to promote the fund.