Thursday, September 29, 2022

Australia’s First Crypto-Centered ETF Pulls $1.3M on Launch Day

With some thick dark mist currently hovering over the crypto market, there seems to be jubilation and ecstasy in faraway Australia as the first crypto Exchange Traded Fund (ETF) goes live.

After a much-anticipated launch that kept being pushed forward as a result of ongoing standard checks by the partner crypto trading exchange, Cboe Global Markets has finally launched Australia’s first crypto-centered ETFs on Cboe Australia- a cryptocurrency trading exchange.

The launched ETFs trio which are 21shares of Bitcoin ETF, Ethereum ETF, and Cosmos Purpose Bitcoin Access ETF have so garnered a cumulative $1.3 million even though financial experts foresee the funds reaching a growing volume of about $1 billion in the near future.

The Bitcoin Access ETF (CBTC) which is a product of Cosmos Asset Management, a cryptocurrency investment firm which is based in Sydney is said to function in a rather unique style as it mirrors the performance of Purpose Bitcoin ETF even though the Purpose ETF Units is a non-currency hedged ETF that is denominated in United States Dollar.

On the other hand, the other duo ETFs which are the Bitcoin ETF (EBTC) and the Ethereum ETF (EETH) are products of a collaboration between ETF Securities and 21Shares which is an Exchange-Traded Products (ETP) provider domiciled in Switzerland. These two ETFs work differently from the CBTC as they track the value of the underlying assets in the Australian Dollar.

Kicking off on a rather good note, the funds of Cosmos Asset Management exchanged 51,572 shares for $398,135. The asset management company is optimistic of far better days ahead as it expects increased trading activity as more institutional investors plugin during the two-month fee waiver it has placed on CBTC and even after the waiver period.

There is a significant trend in ETF push around the world. Up there in the orient, asset manager Huobi Tech recently submitted its application to the Securities and Futures Commission (SFC) of Hong Kong, requesting that it may extend its ETF service offering to retail investors in Hong Kong. 

Taking a trip to the West, micro-investing firm Acorn which is based in California and with a valuation of $2 billion has offered to expose its customers to Bitcoin (BTC) investment through the Proshares Bitcoin Strategy ETF.

Victoria Nye
A Blockchain columnist who is enthusiastic about developing a network interface between the real world and the cryptosphere.

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