Thursday 12th May 2022
ETF Securities wins Australia's crypto ETF race
ETF Securities has won the race to list Australia's first cryptocurrency ETF, ending a long drawn out battle among ETF providers.
ETF Securities has won the race to list Australia’s first cryptocurrency ETF, ending a long drawn out battle among ETF providers. Australia’s first Cboe exchange listed bitcoin and ethereum ETFs are set to launch on Thursday, giving investors long awaited access to both cryptocurrencies. A delay stalled the previous launch date of April 27.
ETF Securities and 21 Shares are offering an opportunity for investors in:
- The ETFS 21Shares Bitcoin ETF (EBTC)
- The ETFS 21Shares Ethereum ETF (EETH)
ETF Securities has formed a partnership with 21Shares who are a Swiss cryptocurrency funds management unit. ETFs will take care of operations while 21Shares looks after research and support. A third ETF will also list on the same day by fund manager Cosmos Asset Management – The Cosmos Purpose Bitcoin Access ETF (CBTC).
The ETF launch is a massive step in making crypto mainstream and in propelling Australia as a leader in the digital asset. Australian investors have been forced onto unregulated crypto exchanges to buy Bitcoin or Ethereum. Exchanges which come with weaker investor protections and high risks. With the launch of the two ETFs, investors will be able to gain exposure whilst in a tightly regulated environment with government oversight. Using stock codes EBTC or EETH, an investor can gain direct ownership of either cryptocurrencies which can be sold at any time.
Kanish Chugh, ETF Securities Head of Distribution, said: “These funds are a culmination of many years of hard work by the ETF Securities and 21Shares teams. We have worked with regulators, service providers and other stakeholders to ensure they are best in class. The launch of these funds shows our commitment to being Australian ETF innovators. Australian investor interest in cryptocurrencies has not waned in recent months even as we have seen underperformance and with bitcoin’s recent sell off as well, it may present an opportunity for investors who have been looking for attractive entry points into this new asset class.”
According to ETF Securities, “All bitcoin and ether is held in offline (“cold storage”) and in Faraday cages, meaning away from the internet and away from any uncontrolled flows of electricity. This substantially reduces the risk of hacking.”
With Bitcoin down 50 percent from its all-time high in November, its price at $32k is a bargain, if attributes that make bitcoin a great long-term investment still hold true. The current environment offers a great buying opportunity for investors with a long term view and a high risk tolerance. Either way, the launch is expected to attract strong interest from investors.
The two ETFs will begin trading today on Cboe Australia.
Ishan is an experienced journalist covering The Inside Investor and The Insider Adviser publications.
