- The spot ETFs for Bitcoin and Ethereum will give investors exposure to crypto in a regulated environment.
- Coinbase will serve as the custodian by holding the Bitcoin (BTC) and Ether (ETH) in cold storage.
Australia is all set to get its first spot crypto ETFs for both Bitcoin (BTC) and Ethereum (ETH). 21Shares AG, the Swiss-based issuer of crypto ETPs is issuing two funds in partnership with ETF securities as a means to provide “simple, cost-effective and direct access to cryptocurrency investments”.
The ETFS 21Shares Bitcoin ETF is a spot Bitcoin ETF product directly investing in Bitcoin. Similarly, ETFS 21Shares Ethereum ETF is the first ETF to invest directly in Ether (ETH). As per the plan, both the funds shall go live next week on April 27.
The press release notes that both the funds will trade on the CBOE exchange with ETFS 21Shares Bitcoin ETF (Code: EBTC) trading the Bitcoin price in Australian Dollars. The ETF fund shall be completely backed by Bitcoin held in cold storage by Coinbase. Similarly, ETFs 21Shares Ethereum ETF (Code: EETH) will track the price of Ether in AUD. Speaking of this development, Hany Rashwan, CEO and co-founder of 21Shares, said:
We’re so incredibly excited to be able to offer the first direct exposure Bitcoin and Ethereum ETF in Australia. Australian investors clearly want and deserve an affordable, easy, and professional way to access the growing crypto asset class and we’re delighted to continue building accessible bridges into the crypto world. We’re starting with Bitcoin and Ethereum but have even more exciting plans for Australian investors.
Spot Bitcoin ETF in a tightly regulated environment
Institutional investors in the United States have been waiting for a long to get a spot Bitcoin ETF in the market. However, the U.S. SEC has been blocking multiple bids by the financial players citing insufficient investor protection measures.
But Australia is setting new precedence by being early in the game. Graham Tuckwell, Executive Chairman of ETF Securities Australia said that the two products – EBTC. and EETH – will give investors exposure to digital assets in a highly regulated environment. Besides, investors don’t need to manage their own Bitcoin or Ethereum wallets or manage risks. Tuckwell says;
Once we decided to build a range of crypto ETFs for the Australian market, there was only one partner we wanted to work with, and that’s 21Shares. Its pioneering approach to secure investment in cryptocurrency has been emulated by other fund managers around the world,
Cosmos asset management introducing its Bitcoin ETF
Apart from 21Shares, Cosmos Asset Management has also received the regulatory approval to launch Bitcoin ETF in Australia. The Australia Securities Exchange (ASX) Clear capital markets clearinghouse has greenlighted the Bitcoin ETF application from Cosmos.
Cosmos managed to get the regulatory approval after beating out local contenders such as BetaShares, VanEck, etc. But unlike the 21Shares Bitcoin ETF which invests directly in BTC, the Cosmos Bitcoin ETF is a fund of funds. The Cosmos Bitcoin ETF seeks indirect exposure to spot Bitcoin via the Canadian Purpose Bitcoin ETF.
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