3iQ Latest Crypto ETF Fund Manager To Join Australian Market

Asset manager 3iQ has joined the likes of 21Shares and Cosmos Asset Management in offering crypto ETFs on the Cboe Australia exchange

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Sydney, Australia. Credit: Shutterstock.

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key takeaways

  • The fund manager’s Australian listing aims to track the firm’s Canada-based funds
  • 3iQ joins a growing list of fund managers offering similar products amid a market downturn and declining trading volumes

3iQ has become the latest ETF manager to join the Australian market with two new listings on the Cboe Australia exchange.

The listed 3iQ CoinShares Bitcoin Feeder ETF (BT3Q) and the 3iQ CoinShares Ether Feeder ETF (ET3Q), both domiciled in Australia, provide investors with exposure to 3iQ’s underlying ETFs based out of Canada and listed on the Toronto Stock Exchange.

The underlying ETFs invest in long-term holdings of bitcoin and ether from exchanges and OTCs that are vetted by 3iQ, the manager said in a statement on Tuesday. The manager, which holds around $1.2 billion in crypto assets on behalf of clients, is not the first to the table with its offerings.

In May, Switzerland-based 21Shares and London-based ETF Securities became the first in the country to debut their bitcoin and ether ETFs via a joint effort. Those listings were initially delayed in April before being given the green light two weeks later. Australia-based Cosmos Asset Manager later joined the fray, adding its own physically-settled bitcoin and ether ETFs to the list toward the end of May.

“We’re entering the Australian market with a significant point of difference, and that’s a proven track record of introducing and managing digital assets into regulated markets,” 3iQ told Blockworks when asked about competitors.

The variety for investors has come at a time when the Australian crypto market has been somewhat subdued, as evidenced in the debut trading volumes among 21Shares’ ETFs.

Still, the move marks a turning point in Australia’s crypto landscape and may prove an essential tool among larger players looking to get their feet wet with the nascent asset class.

ETFs remove the need for institutional and retail investors to set up digital wallets while offering a more secure solution by way of a sanctioned custodian, 3iQ said. Though, they are not without their inherent pitfalls, as typical ETFs tend to track the underlying price of cryptos, such as bitcoin, and are vulnerable to extreme periods of market volatility.

“There are risks associated with investing in cryptocurrency-based products,” 3iQ CEO Fred Pye said in the statement. “These products are considered very high risk and investors should carefully assess their risk profile and seek their own financial advice before investing”

Both funds, which are available for investment either via Cboe, a stockbroker, or an online brokerage account, are expected to feature a low fee structure with a total management expense ratio of 1.20%, according to the statement.


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