Aussie crypto ETFs could see $1 billion following delayed launch

Two of the three Aussie crypto ETFs focused on offering exposure to BTC and the other focused on ETH.


With crypto markets in freefall, three crypto-focused exchange-traded funds (ETFs) chose today to launch trading on Cboe Australia. The three Aussie crypto ETFs are the first to go live in the country. Two of them focused on providing exposure to Bitcoin (BTC), while the other focused on Ethereum (ETH).

So far, the ETFs have generated more than $1.3 million in total. Furthermore, it is expected that they will get roughly $1 billion in future inflows.

Three Aussie crypto ETFs go live

The Cosmos Purpose Bitcoin Access ETF (CBTC) from Sydney-based crypto investing business Cosmos Asset Management “approximately tracks the performance of the USD denominated ETF non-currency hedged units (Purpose ETF Units) in the Purpose Bitcoin ETF,” according to the company.

The other two ETFs under ETF Securities collaborated with 21 Shares, a large Swiss exchange-traded product (ETP) provider. The Bitcoin ETF (“EBTC”) and Ethereum ETF (“EETH”) are the two funds. They both keep track of the worth of their assets in Australian dollars (AUD).

At the time of writing, Cboe statistics showed that 21 Shares EBTC and EETH had traded 125,271 and 142,206 shares, respectively, for a total volume of $519,874 and $416,663.

Need for local ETFs

Cosmos Asset Management’s fund has had a slower start, with 51,572 shares traded for a total of $398,135. Though, the activity could pick up shortly. That is if the firm eliminated costs on CBTC for two months in order to attract institutional interest.

Given the prominence of BTC and ETH, ETF Securities Chairman Graham Tuckwell stressed the need of releasing Aussie crypto ETFs in a local context in a public statement.

“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,“ Tuckwell said.

Despite the historic moment, not everyone was bullish. Kraken’s Managing Director for Australia, Jonathon Miller, hailed this “significant milestone for the maturation of the digital assets space” while pointing out that investors could already purchase Bitcoin.

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