Reports said that with crypto markets tanking, three crypto-focused exchange-traded funds (ETFs) picked a difficult day to commence trading on local exchange Cboe Australia.
It has been reported that the trio’s launch marks the first crypto ETFs to go live in Australia, with two of them focused on offering exposure to Bitcoin (BTC), and the other focused on Ether (ETH). So far, the three ETFs have generated more than $1.3 million between them, and it has been estimated that they could see around $1 billion worth of inflows moving forward.
However, the Cosmos Purpose Bitcoin Access ETF (CBTC) from Sydney-based crypto investment firm Cosmos Asset Management offers a relatively indirect route to BTC, as it “approximately tracks the performance of the USD denominated ETF non-currency hedged units (Purpose ETF Units) in the Purpose Bitcoin ETF.”
The report said that the other two ETFs were developed by ETF Securities in partnership with major Switzerland-based exchange-traded products (ETP) provider 21 Shares. The funds are called the Bitcoin ETF (EBTC) and Ethereum ETF (EETH). They both track the Australian dollar (AUD) value of their respective assets.
Likewise, according to Cboe data, 21 Shares of EBTC and EETH have seen 125,271 and 142,206 shares trade hands, which accounts for around $519,874 and $416,663 in volume.
Cosmos Asset Management’s fund has had a relatively slower start at 51,572 shares traded for a total of $398,135. The activity could soon pick up, given that the firm has waived fees on CBTC for two months to attract institutional interest.
ETF Securities head of distribution Kanish Chugh noted that while it was a difficult time to launch amid the crashing crypto market, it also provides investors with a reasonable chance to get some skin in the game.
Thus, he added:
“Given how volatile markets are now in the short term, it will be hard to determine how Bitcoin and Ether will perform. What we are seeing, though, is with Bitcoin coming off more than 50% from its 2021 high, investors are considering the current volatility as providing them with an opportunity to invest.”