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.

Aussie crypto ETFs see $1.3M volume so far on difficult launch day

May 12, 2022 Coin Telegraph

Aussie crypto ETFs see .3M volume so far on difficult launch day

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The trio’s launch marks the first crypto ETFs to go live in Australia, with two of them focused on offering exposure to BTC and the other focused on ETH.

With crypto markets tanking, three crypto-focused exchange-traded funds (ETFs) picked a difficult day to commence trading on local exchange Cboe Australia today.

The trio’s launch marks the first crypto ETFs to go live in Australia, with two of them focused on offering exposure to Bitcoin (BTC) and the other focused on Ethereum (ETH).

So far the three ETFs have generated more than $1.3 million between them, and it has been estimated that they could see around $1 billion worth of inflows moving forward.

The Cosmos Purpose Bitcoin Access ETF (CBTC) from Sydney-based crypto investment firm Cosmos Asset Management offers a relatively indirect route to BTC, as it “approximately tracks the performance of the USD denominated ETF non-currency hedged units (Purpose ETF Units) in the Purpose Bitcoin ETF.”

The other two ETFs were developed by ETF Securities in partnership with major Switzerland-based exchange-traded products (ETP) provider 21 Shares. The funds are called the Bitcoin ETF (“EBTC”) Ethereum ETF (“EETH”). They both track the Australian dollar (AUD) value of their respective assets.

According to Cboe data at the time of writing, 21 Shares EBTC and EETH have seen 125,271 and 142,206 shares trade hands, which accounts for roughly $519,874 and $416,663 in volume respectively.

Cosmos Asset Management’s fund has had a relatively slower start at 51,572 shares traded for a total of $398,135, however activity could soon pick up as given that the firm has waived fees on CBTC for two months to attract institutional interest.

Speaking on the launch with Cointelegraph, ETF Securities Head of Distribution, Kanish Chugh noted that while it was a difficult time to launch amid the crashing crypto market, it also provides investors with a reasonable chance to get some skin in the game:

“Given how volatile markets are now in the short term it will be hard to determine how Bitcoin and Ethereum will perform. What we are seeing though is with Bitcoin coming off more than 50% from its 2021 high, investors are considering the current volatility as providing them with an opportunity to invest. “

“Our crypto ETFs are physically backed and tracks the underlying price of Bitcoin and Ethereum and we have high hopes that EBTC and EETH will be a success in the long term,” he added.

In a public announcement, ETF Securities Chairman Graham Tuckwell also emphasized the significance of launching crypto ETFs in a local context given the stature of BTC and ETH.

“The market capitalization and trading volumes for these two leading cryptocurrencies are now larger than any company listed on the Australian stock exchanges, yet investors have not been able to gain access to them in a regulated manner,“ he said.

Not everyone was as bullish despite the landmark moment however, with Kraken’s Managing Director for Australia Jonathon Miller hailing this “significant milestone for the maturation of the digital assets space” while pointing out investors could already buy Bitcoin.

“However, it isn’t necessarily a watershed moment for accessibility. We must remember that individual investors can already buy Bitcoin directly and each layer of abstraction away from the underlying asset can add risk and cost,”

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.

Charles Schwab Files for ‘Crypto Economy ETF’ With SEC

March 4, 2022 Bitcoin.com

Fidelity seeks approval for 2 more crypto-metaverse ETFs

January 28, 2022 Coin Telegraph

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The funds will track Fidelity proprietary Crypto Industry and Digital Payments and Metaverse indices.

Fidelity Investments appeared undeterred by the U.S. Securities and Exchange Commission's, or SEC's, rejection of its Wise Origin Bitcoin Trust spot exchange-traded fund (ETF) on Thursday. Following the setback, the company filed two more prospectuses involving crypto-metaverse ETFs for regulatory approval. The proposals are for the Fidelity Crypto Industry and Digital Payments ETF and the Fidelity Metaverse ETF, respectively. In rejecting the Wise Origin Bitcoin ETF, the SEC cited the exchange listing the ETF, the Cboe BZX, for not having a proper "surveillance-sharing agreement with markets trading" to prevent fraud and protect investor interests.

However, neither of the two new ETF applications will have any exposure to digital assets. Instead, they seek to gain exposure to stocks of cryptocurrency and metaverse companies operating in the space. Additionally, the constituent companies must generate substantial revenue for their shares to be added to the fund.

For the Fidelity Metaverse ETF, sectors under consideration are computing hardware and components, digital infrastructure, design, engineering software, gaming technology, web/content developers and smartphone and wearable technology. As for the Crypto Industry and Digital Payments ETF, it will invest in companies operating in cryptocurrency mining, cryptocurrency trading, crypto exchanges, blockchain tech firms, and digital payments processors. In total, there are over 40 digital currency ETFs from a variety of financial entities awaiting a decision from the SEC. The prior month, Fidelity officially gained regulatory approval in Canada to launch a Bitcoin ETF and a Bitcoin Mutual Fund.

Hong Kong regulator re-evaluates retail crypto ETFs laws

November 3, 2021 Coin Telegraph

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The Securities and Futures Commission of Hong Kong has received many requests to approve crypto ETFs for trading.

The Securities and Futures Commission, or SFC, in Hong Kong is reviewing regulations surrounding virtual currency transactions, including whether individuals can invest in exchange-traded funds, or ETFs.

According to a report by South China Morning News on Wednesday, the 2018 regulations limited transactions of cryptocurrencies via funds or trading platforms to professional investors with at least HK$8 million ($1,028,624.00) to invest.

SFC's deputy chief executive Julia Leung Fung-yee stated that the re-evaluation will be made "to see if it is still fit for purpose and whether modifications are required." Fung-yee, speaking at the 2021 Hong Kong Financial Technology Week conference, said that “virtual assets are edging toward traditional finance,” hence, the need to review the laws.

“More, [and] different types of virtual asset investment products are available and conventional exchanges overseas now offer cryptocurrency ETFs.”

Crypto ETFs are not available to Hong Kong-based investors, even though these financial instruments can be bought from other countries. In the United States, at least 12 applications for these funds have been submitted to the SEC by firms wanting to provide speculators with a chance to dabble in cryptocurrencies. Several inquiries have been submitted to the Hong Kong regulator by companies wanting to provide such investments.

Since the SFC established these regulations three years ago, digital assets have grown massively in popularity, with Bitcoin (BTC) rising six-fold to $62,238 this week. The rally was spurred by big investors and funds rushing into cryptocurrencies on the belief that they will soon be used in payments while retail investors joined the party for quick profits.

The SFC is collaborating with the de facto central bank, the Hong Kong Monetary Authority, or HKMA, to produce a unified circular after the evaluation. According to Fung-yee, the SFC and HKMA will apply the principle of "same business, same risks and same rules" for banks, brokers and digital platforms conducting digital currency asset-related activities.

Impossible to Run Away From Cryptocurrencies Says Zimbabwe Finance Minister

October 16, 2021 Bitcoin.com

SkyBridge raises $100M for Algorand fund and files for crypto company ETF

September 16, 2021 Coin Telegraph

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Anthony Scaramucci revealed that SkyBridge currently holds $700 million worth of cryptocurrency.

Alternative investment firm SkyBridge capital hopes to expand its crypto offerings, filing for a crypto-focused exchange-traded fund (ETF) on Tuesday and revealing plans for an Algorand fund at this week’s SALT conference in New York.

Speaking to CNBC, SkyBridge founder and former White House Communications Director Anthony Scaramucci said the firm had raised more than $100 million toward the newly announced Algorand fund. He added that the firm currently holds roughly $700 million worth of crypto assets.

Scaramucci asserted that “crypto is here to stay,” adding that regulators must act “very quickly” if they intend to stem the snowballing adoption of the technology.

“This is a lot like Uber — the regulators wanted to knock Uber out of business, but the people wanted Uber and the people won,” he said, adding:

“Before long there will be 200 million [crypto] users in the United States.”

Scaramucci’s comments come as many onlookers fear a regulatory crackdown spearheaded by the U.S. Securities and Exchange Commission (SEC).

Despite expressing disagreement with SEC head Gary Gensler’s recent characterization of the crypto sector as being “rife with fraud and abuse,” Scaramucci highlighted his appreciation for the position Gensler is in.

He’s got a lot of people in Congress that don’t fully understand it. There’s a lot of negativity. I would implore people like Senator Elizabeth Warren to come to a conference like this and sit with people in the industry so she can understand what the protocols actually are [...] I think we've got to get everybody up the curve in terms of education.”

However, other finance magnates speaking at the event do not share Scaramucci’s optimism regarding the ability for crypto adoption to outrun the grasp of heavy-handed regulations.

Ray Dalio, the founder of the world’s third-largest hedge fund Bridgewater Associates, predicted the increasing popularity of digital assets will draw the ire of lawmakers.

“At the end of the day if it’s really successful, [...] they will try to kill it. And I think they will kill it because they have ways of killing it,” he told CNBC.

Despite his outlook, Dalio slammed cash as “trash,” adding that all monetary assets offering an alternative to cash are “worth considering,” including Bitcoin.

“I think it’s worth considering all the alternatives to cash and all the alternatives to the other financial assets. Bitcoin is a possibility. I have a certain amount of money in Bitcoin,” he said.

Skybridge filed with the SEC for a crypto-focused ETF on Sept. 14. If approved, the First Trust SkyBridge Crypto Industry and Digital Economy ETF would invest at least 80% of its net assets into leading companies representing the crypto industry ecosystem, however would not seek direct exposure to cryptocurrency.

SEC Chair Gensler Outlines Plans for Crypto Trading, Exchanges, Investor Protection, Bitcoin ETFs

August 5, 2021 Bitcoin.com

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