Cboe refiles 5 Bitcoin ETFs to include Coinbase surveillance agreements

July 12, 2023 Coin Telegraph

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The surveillance-sharing agreements are a measure recommended by the SEC in March, which says they can prevent fraud and protect investors.

Exchange operator Cboe Global Markets has amended five spot Bitcoin (BTC) Exchange-Traded Fund (ETF) applications to include a surveillance-sharing agreement (SSA) with Coinbase.

On July 11, Cboe amended filings with the United States Securities and Exchange Commission (SEC) for the ETFs from Invesco, VanEck, WisdomTree, Fidelity and the joint fund by ARK Invest and 21Shares.

Cboe said it had "reached an agreement on terms with Coinbase" to enter into the SSA's which were settled on June 21. The initial filings for the ETFs stated the parties were "expecting to enter" an SSA prior to potentially offering the ETFs.

The SSAs are an attempt to meet the SEC's standards aimed at preventing fraudulent conduct and protecting investors, as outlined by the regulator on March 10:

“[An exchange needs] a comprehensive surveillance-sharing agreement with a regulated market of significant size related to the underlying or reference bitcoin assets.”

Spot Bitcoin ETF applications have been a focus point for the industry lately. The filings by Fidelity, Invesco, Wisdom Tree and Valkyrie follow the $10 trillion asset management firm BlackRock which also filed an ETF for SEC approval.

On June 29, the U.S. stock exchange Nasdaq also refiled its application to list BlackRock's ETF, similarly inclusive of an SSA with Coinbase.

Cboe's filings pushed Coinbase (COIN) shares up nearly 10% on June 11, the highest price it's reached since August 16, according to Google Finance.

*Coinbase’s share price jumped nearly 10% with the latest SSA-related filing amendments. Source: Google Finance*

Despite the involvement with Bitcoin ETF applications, Coinbase is currently battling out a lawsuit with the SEC for allegedly offering cryptocurrencies the regulator considers to be unregistered securities.

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Two more spot crypto ETFs launch on Australian markets

June 7, 2022 Coin Telegraph

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Both of the new Australian exchange-traded funds by 3iQ Digital Asset Management will feed from its existing Bitcoin and Ethereum ETFs listed on the Toronto Stock Exchange.

A further two cryptocurrency-backed exchange-traded funds (ETFs) have launched on the Cboe Australia exchange on June 7 bringing the total amount of crypto ETFs available to Australian traders to six.

The Canada-based 3iQ Digital Asset Management (3iQ) launched two spot ETFs, the 3iQ CoinShares Bitcoin (BTC) Feeder ETF and the 3iQ CoinShares Ether (ETH) Feeder ETF.

Both of the Australian funds feed from the firm's Canadian ETFs listed on the Toronto Stock Exchange (TSX), the 3iQ CoinShares Bitcoin ETF, and the 3iQ CoinShares Ether ETF. The underlying assets of the Canadian ETFs are holdings of BTC and ETH held in cold storage by the Gemini crypto exchange.

3iQs funds join the Bitcoin and Ethereum backed funds by 21Shares and Cosmos Asset Management the latter of which saw launch delays in April due to a still-unnamed service provider needing time to support the launch.

Three ETFs, a Bitcoin and Ethereum ETF by 21Shares and a Bitcoin ETF by Cosmos eventually opened to trading in early May becoming the first crypto ETFs in Australia. Cosmos later released an Ethereum-backed fund on May 31.

Much like 3iQ funds, the underlying assets for the Cosmos ETFs are direct investments into the Canadian Purpose Bitcoin and Ethereum ETFs whilst the funds issued by 21Shares are backed by Bitcoin and Ethereum reserves held in cold storage by Coinbase.

A point of difference is that 3iQ boasts is having the lowest expense ratio out of the six, at 1.2%, — 0.05% lower than the 21Shares and Cosmos ETFs each with an expense ratio of 1.25%.

The three original funds by 21Shares and Cosmos had a sluggish start to trading only seeing $1.3 million in volume on the day of launch, far below the estimated $1 billion of expected inflows. The two 21Shares funds received a total of around $936,500 of total inflows, whilst Cosmos’ Bitcoin fund received just over $398,000.

According to data from Cboe at the time of writing, the two 3iQ ETFs have seen a volume of 13,592 and 9,754 shares traded of the Bitcoin and Ethereum ETFs, accounting for around $73,415 and $73,605 respectively to a total of over $147,000, much smaller than its competitors.

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Three new crypto ETFs to begin trading in Australia this week

May 10, 2022 Coin Telegraph

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Australians will soon have five options for cryptocurrency exchange-traded funds as the delayed funds from Cosmos and 21Shares launch this week along with 3iQ’s in the future.

Australians will soon have more options for spot cryptocurrency exchange-traded funds (ETFs) after a previous hold-up was given the green light this week and new funds entered the ETF market.

The latest update came late on May 9 as Cboe Australia issued a round of market notices that three funds previously delayed are expected to begin trading on Thursday, May 12. They include a Bitcoin ETF from Cosmos Asset Management, plus Bitcoin (BTC) and Ethereum (ETH) spot ETFs from 21Shares.

Cboe Australia and Cosmos did not immediately respond to a request for comment, but a spokesperson from 21Shares confirmed to Cointelegraph:

“We're listing on May 12, this Thursday. The downstream issues are resolved.”

On April 26, a day before three of the first crypto ETFs were set to launch, the Cboe Australia exchange delayed the listing of all three funds due to what it said were “standard checks”.

21Shares said to Cointelegraph at the time that a "service provider downstream” needed more time to support the launch of the products which was believed to be a prime broker or other major financial institution.

The listing date comes just in time as a new competitor stepped into the ETF race. 3iQ, the Canadian firm with Bitcoin and Ethereum spot ETFs listed on the Toronto Stock Exchange (TSX), submitted two offer notices to the Australian Securities Exchange (ASX) on April 28.

The notices revealed plans for the firm to offer units of its Bitcoin and Ethereum ETFs on the Cboe Australia exchange. It will provide exposure to the crypto assets by purchasing units of the existing funds on the TSX similar to Cosmos’ ETF which purchases the Canadian Purpose Bitcoin ETF.

It’s unclear when the funds from 3iQ will be listed but with the announcement of the Cosmos and 21Shares funds listing this week, it’s unlikely 3iQ will win the competition of being the first Australian crypto ETF, the prize of which it’s believed could be over $1 billion in inflows.

Failure to launch: Australia’s first 3 crypto ETFs all miss launch day

April 27, 2022 Coin Telegraph

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Three cryptocurrency exchange-traded funds (ETFs) scheduled to launch on the Cboe Australia exchange today were delayed due to “checks” still being undertaken.

The launch of Australia’s first three Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETF) scheduled for today, has been delayed as a result of further “checks” needing to be completed.

The exchange listing the Bitcoin Spot ETF from Cosmos Asset Management, Cboe Australia, released a statement late Tuesday stating that “standard checks prior to the commencement of trading are still being completed” and a “further update will be provided in the coming days.”

Cboe issued the same notice regarding two spot ETFs issued by 21Shares also scheduled for launch today, a Bitcoin ETF and an Ethereum ETF.

It’s unclear why the products are delayed with the Australian Financial Review reporting that a “service provider downstream” — an entity such as a prime broker or major institution with the power to delay listings until it's ready to support the trade of the products — could be to blame for the hold up.

The underlying asset for the Cosmos ETF is a direct investment into the Canadian Purpose Bitcoin ETF, North America’s first Bitcoin exchange-traded fund. The funds issued by 21Shares are backed by Bitcoin and Ethereum reserves held in cold storage by Coinbase.

Toby Chapple, Head of Trading at Australian wealth management firm Zerocap, told Cointelegraph the delay was “not a big deal.” Referring to the Cosmos Bitcoin ETF he added:

“You would think an ETF which invests in another ETF would be easier to handle, but the broker will just be ensuring they have all their ducks lined up before they go live.”

Cici Lu, Managing Partner at crypto asset investment and wealth management firm Apollo Capital also said that it seemed like just a small bump in a long road for the funds:

“While this isn't an ideal start for the ETF's, it will be looked at as only a minor speed bump in an otherwise successful result for the crypto asset industry in Australia.”

He added: “The traditional finance sector is trying to get its head around how to adapt their businesses to a new asset class, it is a journey both crypto and TradFi are on together. ”

Cointelegraph contacted Cboe Australia, Cosmos and 21Shares for more information regarding the delays but did not immediately hear back.

Cosmos Asset Management’s “Cosmos Purpose Bitcoin Access ETF” received approval from the Australian Securities Exchange (ASX) on April 19 to begin trading following a seven-day notice period and was expected to attract around $1 billion after its launch.

The two ETFs issued by 21Shares received approval around the same time, aligning all three funds with the same launch date.

21Shares isn’t a stranger to hold ups with its crypto ETF products Earlier in April the United Stated Securities and Exchange Commission (SEC) rejected its Bitcoin ETF which was to list on the US Cboe BZX Exchange saying the exchange didn’t meet requirements for listing a financial product.

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Investment product issuer 21Shares will list Bitcoin ETP on Aquis Exchange

June 7, 2021 Coin Telegraph

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The announcement comes the same day as ETC Group’s Bitcoin ETP began trading on the same exchange.

Switzerland-based 21Shares, formerly known as Amun, has said it will make its Bitcoin (BTC) exchange-traded product available to traders in the United Kingdom through the Aquis Exchange.

According to an announcement from 21Shares, its Bitcoin exchange-traded product (ETP) will be available to professional investors on the Aquis Exchange this summer. U.K.-based firm GHCO will be acting as the crypto ETP’s liquidity provider, with 21Shares saying the product would be “engineered like an [exchange-traded fund].”

“ETPs trade on exchanges in a similar manner to a listed stock and institutional investors in the U.K. will get exposure to Bitcoin via a regulated framework and structure which they are already accustomed to,” said 21Shares. “The ETP has been designed to provide institutional U.K. investors with secure and cost-effective exposure to Bitcoin without the associated Bitcoin custody and security challenges.”

21Shares reported more than $1.5 billion in assets under management across 14 ETPs available on European stock exchanges. One unit of the firm’s Bitcoin ETP on Aquis will reportedly represent exposure to 0.00035 BTC, or roughly $12.54 at the time of publication.

A few companies have begun expanding their crypto products to the U.K. market. Also on Monday, crypto investment manager ETC Group’s Bitcoin ETP began trading on the Aquis Exchange in London and Paris. However, the country’s financial watchdog, the Financial Conduct Authority, banned the sale of crypto derivatives to retail traders in January.

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