ETFS to launch BTC and ETH ETFs
ETF Securities (ETFS) will launch Bitcoin (BTC) and Ethereum (ETH) exchange traded funds (ETFs) in partnership with European cryptocurrency manager, 21 Shares.
The fund manager said BTC and ETH had been two of the best-performing assets of the past decade.
“Offering a currency without a government, Bitcoin has been described as both an inflation-hedge and ‘digital gold’,” the firm said.
“While Ethereum, thanks to its smart contracts function, is at the centre of most of the world’s blockchain innovation— like non-fungible tokens (NFTs).”
“Australians wanting to buy Bitcoin and Ethereum have historically been forced onto unregulated crypto exchanges.
“But with the launch of Bitcoin and Ethereum ETFs, investors will be able to trade on highly regulated exchanges.”
Zurich-based 21Shares currently had almost US$3 billion ($4.23 billion) in assets under management inside its 20 European crypto exchange traded products (ETPs) and 80 listings.
This was the latest ETF provider to announce plans for a crypto ETF following announcements by VanEck and BetaShares in November.
In November, the Australian Securities and Investments Commission (ASIC) introduced a ‘crypto-asset’ category in the licensing application for responsible entities but so far only extended to Bitcoin and Ethereum with the possibility of more in the future.
Praemium had already approved Monochrome’s Bitcoin Fund, following ASIC’s announcement.
However, some managers had noted there could be problems bringing crypto products to the market.
AUTHOR
Chris Dastoor
Recommended for you
Amid a growing appetite for alternatives, investment executives have shared questions advisers should consider when selecting a private markets product compared to their listed counterparts.
Chief executive Maria Lykouras is set to exit JBWere as the bank confirms it is “evolving” its operations for high-net-worth clients.
Bennelong Funds Management chief executive John Burke has told Money Management that the firm is seeking to invest in boutiques in two specific asset classes as it identifies gaps in its product range.
Responsible investment performance concerns have lessened as the market hits $1.6 trillion in AUM, according to RIAA’s annual report, but greenwashing fears among asset managers are on the rise.
