Two Additional Crypto ETF Unveils To The Australian Markets

On Monday, the Cboe Australian Exchange announced the launch of two more ETFs. Altogether, this brings the total of the crypto ETFs on the Australian market to six.

Accordingly, the Canadian-based fund manager, 3iQ, listed the two spot ETFs. The new ETFs invested in are to expand the Australian exchange-traded fund sector.

All the ETF funds originated from the company’s listed ETFs in Canada, which the Toronto Stock Exchange (TSX) listed. Meanwhile, both assets from the Canadian listed ETFs have Bitcoin and Ethereum holdings and are held in the custody of a crypto exchange.

The 3iQ funds became part of the BTC and ETH-backed funds by both fund managers. However, the Cosmos Assets Management launch was delayed in April after a yet-to-be-named service provider needed some time before the launch.

Last month, three ETFs consisting of BTC and ETH by 21Shares, alongside a BTC ETF from Cosmos, were available to the public for trading. This makes them the first-ever crypto ETFs to enter the Australian markets.

However, just like in the case of 3iQ, Cosmos’s exchange-traded funds are from direct investment. These investments originated from Canada. The investment comes from the Canadian ETF space as the firm seeks to expand.

Moreover, the funds provided by 21Shares are all pegged to BTC and Ether reserves in the custody of Coinbase. The difference shows the lowest expense ratio of all the ETFs belongs to 3iQ.

The expense ratio of 1.2%, -0.05% shows a percentage lower than that of the other ETFs altogether, each having 1.25%.

Stormy Start to Trading

Both funds from Cosmos and 21Shares experienced a stormy beginning to trading by recording only $1.3 million in trade volume on the launch day. This is for the expected $1 billion inflows estimated before the launch.

In addition, the 21Shares funds recorded close to $936,500 in total inflows. For its part, the Cosmos BTC fund received a little above $398,000.

Cboe revealed that the two recently launched 3iQ ETFs had recorded 13,592 and 9,754 in trading volumes. This accounts for $73,415 to $73,605 for Bitcoin and Ether ETFs. Meanwhile, the total value of $147,000 appears lower.

Notwithstanding the shaky start to the life of the 3iQ ETF, it marks another significant milestone for the Australian ETF landscape. The crypto industry in Australia is getting the attention it needs, and the latest move may prove essential for crypto expansion in the country.

Exchange-traded funds remove barriers to setting up a digital wallet while ensuring secure custody of assets for investors.

Though ETFs, like all products, have their flaws, they can track any hidden values of cryptocurrencies vulnerable to market volatility. Crypto-related products have risks, and investors must assess any service before investing. 

The price direction in the crypto market changes more often, but other markets influence the price pattern. Moreover, the hike in interest rates puts the crypto market on the same line as the equity market as prices fluctuate. 

Meanwhile, both ETF products are available to the public for investment via Cboe.