Luno Bundles: Crypto Made Easy, But Is It Shariah-Compliant?

28 Nov 2024 by Sharlife
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Cryptocurrency investments are becoming more popular in Malaysia as more people learn about them and look for new ways to grow their wealth. However, for busy individuals, managing investments and keeping up with the 24/7 crypto market can be overwhelming. To make things easier, Luno has introduced Luno Bundles, a feature that helps simplify crypto investments while following Malaysia’s financial rules.

What is “Luno Bundles”?

Luno Bundles makes it easy for users to invest in a group of top cryptocurrencies in just one transaction. Similar to Exchange-Traded Funds (ETFs), this feature combines several digital assets into one package for simple management.

Using the CoinDesk Large Cap Select Index (DLCS), Luno Bundles focuses on the top 5 to 10 cryptocurrencies with the largest market value. The portfolio is automatically updated every three months to match market changes, so investors don’t have to adjust their investments manually.

Why Luno Bundles is Ideal for Malaysians

Malaysia’s cryptocurrency market operates under a regulated framework established by the Securities Commission Malaysia, providing a safe and secure environment for investors. Luno Bundles enhances this landscape by offering compliance and user-friendly benefits:

  • Diversification for Risk Management:
    Spreading investments across multiple cryptocurrencies reduces reliance on a single asset, such as Bitcoin or Ethereum, helping to mitigate risks from market volatility.

  • Regulatory Assurance:
    Luno ensures that all assets in its bundles meet Malaysia's strict regulatory standards, giving investors peace of mind.

  • Ease of Use for Beginners:
    Luno Bundles removes the complexities of choosing individual cryptocurrencies and tracking the market. Its automated rebalancing makes investing accessible even to those new to crypto.

  • Convenient for Busy Professionals:
    With its 24/7 market, cryptocurrency trading can be overwhelming. Luno Bundles is designed for busy investors, eliminating the need for constant chart monitoring by automating portfolio management.

How Luno Bundles Works

Getting started with Luno Bundles is simple:

  1. Access: Navigate to the “Explore” tab in the Luno app or website.

  2. Invest: Decide on the amount to invest, which is then distributed across a portfolio of top-performing cryptocurrencies.

  3. Monitor: Track portfolio performance within the app, which updates quarterly to reflect market trends.

This seamless process ensures that investors can engage in crypto markets without the usual stress of manual portfolio adjustments.

Expert Perspectives on Luno Bundles

Scarlett Chai, Luno Malaysia’s Country Manager, highlighted how simple and user-friendly Luno Bundles is, making it appealing for both new and experienced investors.
“Malaysians are increasingly exploring alternative investments, and Luno Bundles address a crucial need for simplicity and diversification. With this feature, you can participate in the fast-growing world of crypto without the stress of tracking charts daily,” she said.

Is Luno Bundles Shariah-Compliant?

For Muslim investors in Malaysia, the Shariah compliance of financial products is a key consideration. The permissibility of Luno Bundles depends on the types of cryptocurrencies included in its portfolio.

Evaluating Shariah Compliance

  • Permissible Investments: If the bundle only includes Shariah-compliant tokens that adhere to Islamic ethical and financial principles, it is generally considered permissible (mubah).

  • Non-Permissible Investments: If the portfolio mixes compliant and non-compliant cryptocurrencies, It is better to avoid due to involvement in buying and selling of impermissible item (coins and tokens)

Conclusion

Luno Bundles makes investing in cryptocurrency easy for Malaysians by allowing you to invest in a group of top cryptocurrencies with just one transaction. It simplifies the process, especially for those with busy schedules, by automatically updating the portfolio every few months.

However, for Muslim investors, it's important to check if the cryptocurrencies in the bundle are Shariah-compliant. If any of the assets go against Islamic principles, such as involving gambling or interest, the entire investment may not be permissible (haram).

To ensure that your investment aligns with your values, make sure the cryptocurrencies in the bundle are Shariah-compliant. If they are, the investment is generally permissible (harus). So, while Luno Bundles offers an easy and diversified way to invest, it’s important to consider Shariah compliance before making a decision.

Ready to begin your Shariah-compliant crypto journey? Click below to explore more today!