Australia’s First Bitcoin and Ether Spot ETFs Go Live Next Week

  • 21Shares, which offers products listed on 10 regulated European exchanges, will offer two spot crypto ETFs
  • The company’s ETF pair is set to launch on the same day as a fund offered by Cosmos Asset Management, which intends to invest in shares of a Canadian bitcoin ETF.

The first Australian ETFs to invest directly in bitcoin and ether are expected to hit the market next week as US fund issuers continue to work with regulators to secure a listing.

Swiss company 21Shares, the world’s largest issuer of crypto exchange-traded products (ETPs), has partnered with ETF Securities to launch the funds.

The 21Shares Bitcoin ETF (EBTC) ETF and 21Shares Ethereum ETF ETF (EETH), which track the price of bitcoin and ether in Australian dollars, are fully backed by respective assets held in cold storage by Coinbase.

Both ETFs are expected to list on the Cboe Australia exchange on April 27.

21Shares CEO Hany Rashwan told Blockworks that the company has been working to provide Australian investors with easier access to crypto for years. At the helm of the world’s oldest Bitcoin ETP, which launched in Switzerland in 2019, the company has navigated everything “from contentious forks to stock splits,” he added.

“This valuable experience and in-depth data is always essential in all of our regulatory conversations,” Rashwan said. “Crypto is not just about bitcoin and ethereum, and we look forward to making the entire crypto world accessible and investable for everyone around the world.”

While ETFs investing directly in crypto-assets have been launched in Europe, Canada and elsewhere, the products open up new opportunities for Australia, whose regulators previously viewed digital assets as volatile and unsuitable for the country’s financial markets. .

Some efforts by the country’s political elite signal a willingness to work constructively with crypto proponents with the aim of ushering in a new era for Australian investors backed by proper legal frameworks.

Those promises are bolstered by attempts to push the country’s forward-thinking approach to greater adoption of digital assets, including private sector experimentation with the nascent asset class.

Last month, Australian bank ANZ became the first major financial institution in the country to issue and execute payment for a stablecoin pegged to the domestic dollar. A green light from the country’s leading clearing house marks another milestone in Australia’s journey towards crypto adoption.

Indeed, the Australian Financial Review reported on Tuesday that Cosmos Asset Management will launch the country’s first bitcoin ETF on April 27. Instead of direct cash exposure, Cosmos’ fund is expected to invest in crypto through Purpose Investments’ bitcoin ETF – which launched in Toronto, Canada. Scholarship in February 2021.

21Shares has approximately $2.5 billion in assets under management. Its products are listed on 10 regulated European stock exchanges.

“Once we set out to create a range of crypto ETFs for the Australian market, there was only one partner we wanted to work with,” said Graham Tuckwell, executive chairman of ETF Securities Australia, in a press release. “[21Shares’] pioneering approach to securing cryptocurrency investments has been emulated by other fund managers around the world.

21Shares has launched a handful of ETPs this year, including products with Aave (AAVE), Chainlink (LINK) and Uniswap (UNI) as underlying assets. Rashwan previously told Blockworks that the company aims to support what it considers to be the top 50 cryptocurrencies by the end of the year.

The pending launches come as the SEC continues to reject cash bitcoin ETF proposals from U.S. fund issuers. Crypto firm executives remain divided on exactly when such a product might be approved.


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  • Ben Strack

    Ben Strack is a Denver-based journalist who covers macro and crypto-native funds, financial advisors, structured products, and the integration of digital assets and decentralized finance (DeFi) into traditional finance. Prior to joining Blockworks, he covered the asset management industry for Fund Intelligence and was a reporter and editor for various local Long Island newspapers. He graduated from the University of Maryland with a degree in journalism. Contact Ben by email at [email protected]

  • Sebastien Sinclair

    blockages

    Senior Reporter, Asia News Desk

    Sebastian Sinclair is a senior reporter for Blockworks operating in Southeast Asia. He has experience covering the crypto market as well as some developments affecting the industry including regulation, business, and mergers and acquisitions. It does not currently hold any cryptocurrency. Contact Sébastien by e-mail at [email protected]

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Australia’s First Bitcoin and Ether Spot ETFs Go Live Next Week


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