Article written by InvestNow – 29th May 2025

One of the more specialised funds on InvestNow is the Bitcoin ETF PIE Fund (the Fund), which provides investors with exposure to the performance of bitcoin, within a regulated tax-effective PIE fund.

Today we talked to Anthony Edmonds, who was the original founder of InvestNow and is now heads up Raise Investments Limited, the investment manager of the Bitcoin ETF PIE Fund – which he recently called “Bitcoin for Boomers”.

Here is what he had to say.

Tell us about yourself

I’m Anthony Edmonds. I was the founder of InvestNow, and now work part-time as the sales manager for Apex Group. This is the global group that bought InvestNow in 2022. I also recently took over the investment management of the Bitcoin ETF PIE Fund through a company my family owns, called Raise Investments. Walter, my son, is also working alongside me in Raise which is both fun and interesting.

What is the Bitcoin ETF PIE Fund?

The Bitcoin ETF PIE Fund provides exposure to the performance of bitcoin within a regulated PIE Fund. It was established in 2021. Today there is about $30 million invested in the Fund through InvestNow.

Originally the Fund was called the Vault International Bitcoin Fund, with this name changing to the Bitcoin ETF PIE Fund in 2025. We changed this reflecting we think the new name better reflects what the Fund is.

You recently called the Fund “bitcoin for boomers” in a media article. What did you mean?

The Fund makes it really easy for anyone to gain exposure to the performance of bitcoin.

This reflects that it is managed Portfolio Investment Entity (PIE) fund, which is the same structure used by most other NZ managed funds and KiwiSaver schemes.

The benefits that this provides is that the Fund is fully regulated here in New Zealand.

Also, the Fund can be accessed through platforms like InvestNow, or through an investment adviser, if people want to consult a professional about the Fund.

Investing in the Bitcoin ETF PIE Fund is exactly the same process as investing in any of the PIE funds on InvestNow. In contrast, when people invest directly in cryptocurrencies, they have to use digital wallets and often invest via offshore platforms, which may require more administration, increase risk, and can be confusing.

Anyone who is bitcoin curious can readily get investment exposure through the Bitcoin ETF PIE Fund through InvestNow, or by talking to their investment adviser.

How is the Bitcoin ETF PIE Fund taxed, and is this different to how a direct investment in bitcoin is taxed?

This is a really big area where the Bitcoin ETF PIE Fund can provide some key benefits.

First up, because the Fund is a PIE, all the tax administration is taken care of. In contrast, for a direct investment in crypto, people often need to do their own tax return, which can involve lots of administration.

Secondly, investors who hold bitcoin directly typically pay tax on the total return generated, including all realised capital gains. In contrast, the Bitcoin ETF PIE Fund is taxed using the Fair Dividend Rate (FDR) method. This means there is no capital gains tax on any gains made on the Bitcoin ETF PIE Fund, and the maximum amount of tax any investor pays is capped at 1.4% in any given year.

Finally, the top PIE tax rate for the Fund is 28%, whereas investors in direct bitcoin are taxed at their marginal tax rate which could be as high as 33% or 39%. It is startling to realise that people are paying roughly 40% more tax in absolute dollar terms when they get taxed at 39% instead of the more favorable 28% rate for PIE funds.

Accordingly, there are really big differences in the way tax works for the Bitcoin ETF PIE Fund versus a direct investment in bitcoin.

How does the Bitcoin ETF PIE Fund invest in bitcoin?

The Fund invests in US and Canadian exchange traded funds, commonly called ETFs, which in turn invest directly in bitcoin. This means that the Bitcoin ETF PIE Fund is easy to administer and manage, as things like the custody of the Fund’s underlying assets is the same as other funds investing in shares. At the same time the performance of these underlying ETFs aim to track the price and performance of actual bitcoin.

Exposure to bitcoin through ETFs like this is what enables the Bitcoin ETF PIE Fund to take advantage of using the Fair Dividend Rate tax method, because from a tax perspective the Fund is technically investing in global shares.

In contrast, if the Bitcoin ETF PIE Fund invested directly in bitcoin, then we would have the additional standard cryptocurrency custody complexities to deal with. Also, if the Fund held bitcoin directly it would result in our investors having to pay tax on their whole return including capital gains. A benefit of the Bitcoin ETF PIE Fund holding the ETFs is being able to use the Fair Dividend Rate tax method, where the most tax any investor pays is 1.4% in any given year.

We believe that the way the Fund works is good for our investors in terms of potentially being tax and administration “light”, plus also being good for us as the investment manager in terms of requiring less administration.

What do you think the future will hold for the price of bitcoin?

I think it was Warren Buffett who said that investment market forecasts existed to make fortune tellers look good. My long experience in the industry has proved Buffett was right – I never trust or believe people who make market forecasts.

Accordingly, I honestly have no idea what the future holds in terms of the performance of bitcoin, beyond knowing that it will remain extremely volatile.

What we are focused on is providing a regulated, administratively simple, tax effective way for Kiwi investors to get exposure to bitcoin if they are interested in it.

I also encourage people to talk to an adviser if they need help, and to remember key investment principles like diversifying, and not putting all their eggs in one basket.

Where can people go to get the Fund’s disclosure material?

FundRock NZ Limited (FundRock NZ) is the issuer and manager of the Fund. FundRock NZ is licensed as a “manager of a registered scheme” under the Financial Markets Conduct Act 2013. Raise Investments Limited is the investment manager for the Bitcoin ETF PIE Fund.

The Fund’s disclosure material is available on InvestNow. Also the Fund’s Product Disclosure Statement (“PDS”), Other Material Information (“OMI”), and Statement of Investment Policy and Objectives (“SIPO”) are available from https://www.fundrock.com/fundrock-new-zealand/ or from https://disclose-register.companiesoffice.govt.nz/.

An investment in the Bitcoin ETF PIE Fund (previously called the Vault International Bitcoin Fund) is a highly speculative investment. Bitcoin is a highly volatile asset. This means the Bitcoin ETF PIE Fund will not be appropriate for all investors. You should read the disclosure material before investing. You should also seek advice from an independent financial adviser to help you make investment decisions.

Disclaimer:

This information is provided by InvestNow Saving and Investment Service Limited (“InvestNow”). The information and any opinions in this publication are based on sources that InvestNow believes are reliable and accurate. InvestNow, its directors, officers and employees make no representations or warranties of any kind as to the accuracy or completeness of the information contained in this publication and disclaim liability for any loss, damage, cost or expense that may arise from any reliance on the information or any opinions, conclusions or recommendations contained in it, whether that loss or damage is caused by any fault or negligence on the part of InvestNow, or otherwise, except for any statutory liability which cannot be excluded. All opinions and market commentary reflect InvestNow’s judgment on the date of this publication and are subject to change without notice. This disclaimer extends to any entity that may distribute this publication. The information in this publication is not intended to be financial advice for the purposes of the Financial Markets Conduct Act 2013, as amended by the Financial Services Legislation Amendment Act 2019. In particular, in preparing this document, InvestNow did not take into account the investment objectives, financial situation and particular needs of any particular person. Professional investment advice from an appropriately qualified adviser is recommended before making any investment. All Investments involve risk.