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
Some 42 per cent of CEOs say they are actively reinventing their business to stay relevant in the next decade, with consumer services the most common choice for asset and wealth managers.
Former Ophir Asset Management chief executive, George Chirakis, has joined private equity manager Scarcity Partners, while the asset manager has appointed a replacement from Macquarie.
Australian Unity has appointed a fund manager for its Healthcare Property Trust, joining from Centuria Healthcare, as it restructures the product with a series of senior appointments.
Financial advisers nervous about the liquidity of private markets funds for their retail clients are the target of fund managers launching semi-liquid products which offer greater flexibility and redemptions.
