The Vault International Bitcoin Fund (VIBF) has emerged as a notable investment vehicle for New Zealanders seeking exposure to Bitcoin without the complexities of direct ownership. Launched in October 2021, VIBF offers a locally accessible, NZD-denominated fund that invests in established global Bitcoin funds and ETFs. This review dives into its structure, fees, benefits, risks, and alternatives—providing a clear, balanced perspective for investors considering digital asset exposure through a regulated financial product.
Understanding the Vault International Bitcoin Fund
The Vault International Bitcoin Fund (VIBF) is the first New Zealand-registered fund dedicated entirely to Bitcoin assets. It allows investors to gain indirect exposure to Bitcoin via a portfolio of international Bitcoin investment products, all managed under a local PIE (Portfolio Investment Entity) structure. The fund is available exclusively through the InvestNow platform, with plans to expand to Easy Crypto in the future.
Unlike holding Bitcoin directly on a crypto exchange—where users manage private keys and face security risks—VIBF handles custody, compliance, and tax reporting, making it an appealing option for risk-averse or less technically inclined investors.
👉 Discover how to access global digital asset opportunities with confidence and ease.
Key Features and Investment Structure
What Does the Fund Invest In?
VIBF does not hold Bitcoin directly. Instead, it allocates capital across four major international Bitcoin funds and ETFs:
- Grayscale Bitcoin Trust (GBTC) – One of the oldest and largest institutional Bitcoin holdings.
- CI Galaxy Bitcoin ETF (BITO) – A Canadian-listed ETF offering direct Bitcoin exposure.
- 3iQ CoinShares Bitcoin ETF (QBTC) – Another Canadian ETF with strong institutional backing.
- Purpose Bitcoin ETF (BTCC) – One of Canada’s first physically backed Bitcoin ETFs.
By diversifying across these vehicles, VIBF reduces counterparty risk while maintaining tight correlation with Bitcoin’s market price.
Management and Custody
The fund is managed by Implemented Investment Solutions, a firm overseeing $5 billion in assets. Vault Digital Funds Limited, founded in partnership with Easy Crypto, acts as the issuer. Custody of underlying assets is secured by regulated third parties like Coinbase Custody, minimizing hacking and fraud risks.
Fees and Costs: Are They Justified?
Understanding the cost structure is crucial when evaluating any investment, especially in high-fee categories like crypto.
- Management Fee: 2.50% per annum
- Buy/Sell Spread: 0.25% (one-time transaction cost)
While 2.50% may appear steep compared to traditional index funds (often below 0.50%), it aligns with global Bitcoin fund averages. Consider this: buying foreign Bitcoin ETFs directly often incurs brokerage fees, currency conversion costs (NZD to USD/CAD), and platform charges—easily exceeding 1–2% annually when combined.
VIBF consolidates these expenses into a transparent fee model, offering convenience and predictability.
Tax Advantages of a PIE Structure
One of VIBF’s standout features is its classification as a PIE fund under New Zealand tax law. This brings significant advantages:
- No capital gains tax on fund-level appreciation.
- Returns are taxed at your Prescribed Investor Rate (PIR): 10.50%, 17.50%, or 28%, based on income.
- Simpler tax reporting—no need to track individual trades or calculate gains/losses from wallet transfers.
For higher-income earners, this can result in meaningful tax savings compared to direct crypto ownership, where every transaction could trigger taxable events.
Pros and Cons of Investing in VIBF
Advantages
- ✅ NZD-denominated investment – No need to manage foreign currencies manually.
- ✅ Simplified access – Invest via InvestNow without opening international brokerage accounts.
- ✅ Enhanced security – Eliminates risks tied to self-custody (e.g., lost keys, phishing).
- ✅ Regulated structure – Operates under FMA oversight with full PDS disclosure.
- ✅ Tax efficiency – PIE status avoids complex crypto tax calculations.
Disadvantages
- ❌ High management fee – At 2.50%, it’s costly relative to passive equity funds.
- ❌ No instant trading – Redemptions take up to five business days; not suitable for day traders.
- ❌ Currency risk remains – Although invested in NZD, underlying assets are exposed to USD/CAD/BTC fluctuations.
- ❌ Concentrated exposure – Entirely tied to Bitcoin performance with no diversification.
👉 Learn how top investors approach digital assets with strategic clarity.
Risk Assessment: How Safe Is VIBF?
Vault clearly labels VIBF as a high-risk investment, assigning it a risk rating of 7 out of 7 in its Product Disclosure Statement (PDS). Key risks include:
- Price Volatility: Bitcoin has seen swings of ±20% within weeks. Past performance (e.g., 7,000% growth between 2016–2021) does not guarantee future returns.
- Market Timing Risk: The fund isn't designed for short-term speculation. Exiting during a crash may lock in losses.
- Security Risk: While custodians use cold storage and multi-signature protocols, no system is immune to breaches.
- Regulatory Uncertainty: Global governments continue shaping crypto regulations, which could impact ETF valuations.
Investors should treat VIBF as a long-term allocation—ideally held for 5–10 years—to ride out volatility.
Alternatives to the Vault International Bitcoin Fund
While VIBF offers convenience, other paths exist for gaining Bitcoin exposure.
1. Buy Bitcoin Directly
Platforms like Easy Crypto allow instant NZD-to-Bitcoin purchases. Benefits include:
- Full ownership and control
- Ability to sell anytime at live prices
- Lower ongoing costs (fees ~0.5–1%)
Drawbacks: Requires secure wallet management and personal tax tracking.
2. Invest in Bitcoin Futures ETFs
Funds like the ProShares Bitcoin Strategy ETF (BITO) offer U.S.-listed exposure using futures contracts. However:
- They don’t hold actual Bitcoin
- Suffer from “roll yield” drag due to contract rollovers
- Often underperform spot Bitcoin over time
3. Buy International Bitcoin ETFs Directly
Canadian ETFs such as Purpose or CI Galaxy can be purchased via brokers like Interactive Brokers. Pros:
- Lower fees than VIBF (~0.8–1.0%)
- Direct exposure
Cons:
- FX conversion needed
- Complex tax reporting
- Limited platform support in NZ
Public Perception and Media Coverage
Since its launch, VIBF has been featured in reputable outlets like RNZ and Stuff.co.nz:
“The Vault International Bitcoin Fund is the first to have its entire allocation invested in the asset class (Bitcoin).”
— Stuff.co.nz“Accessing bitcoin through a fund like this is actually safer because it takes care of all the custody issues.”
— Industry expert commentary
These insights reinforce VIBF’s role as a secure gateway for conservative investors wary of self-custody challenges.
Frequently Asked Questions
Is investing in VIBF the same as owning Bitcoin?
No. You own units in a fund that holds other Bitcoin funds/ETFs—not actual Bitcoin. This means no private keys or wallets to manage.
Can I withdraw my money anytime?
Yes. You can redeem units at any time through InvestNow, with proceeds typically paid within five business days.
Does the fund hedge against currency fluctuations?
No. The fund is unhedged, so changes in NZD/USD or NZD/CAD rates will affect returns—even if Bitcoin’s USD price stays flat.
How does tax work if my investment loses value?
Under PIE/FDR rules, you pay tax on imputed income regardless of whether the fund gains or loses value. Losses cannot be offset against other income.
Is VIBF suitable for beginners?
Yes—especially for those unfamiliar with crypto wallets or tax compliance. The structure simplifies investing while providing professional-grade security.
Should I invest a large portion of my portfolio in VIBF?
No. Given its high-risk profile and lack of diversification, experts recommend allocating only a small percentage (e.g., 1–5%) of your portfolio—if any.
👉 See how leading platforms empower smart entry into digital finance.
Final Thoughts: Who Should Consider VIBF?
The Vault International Bitcoin Fund fills a unique niche in New Zealand’s investment landscape. It’s ideal for:
- Investors seeking regulated, tax-efficient exposure to Bitcoin
- Those uncomfortable managing private keys or wallets
- Long-term holders who prioritize security and simplicity over low fees
However, it's not for everyone. Active traders, cost-sensitive investors, or those wanting direct ownership may prefer alternative routes.
As with any investment in digital assets, never invest more than you can afford to lose—and always consult independent financial advice before proceeding.
Core Keywords:
Bitcoin fund, New Zealand Bitcoin investment, Vault International Bitcoin Fund, PIE crypto fund, Bitcoin ETF alternative, cryptocurrency investing NZ, low-risk crypto access