Sebastian Sinclair

<div id="highlights-block_629e95e1b7483" class="highlights">
 <ul>
 <li>The fund manager&#8217;s Australian listing aims to track the firm&#8217;s Canada-based funds</li>
 <li>3iQ joins a growing list of fund managers offering similar products amid a market downturn and declining trading volumes</li>
 </ul>
 
</div>



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&#8217;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 <a href="https://cms.blockworks.co/first-australian-spot-bitcoin-ether-etfs-to-go-live-next-week/" target="_blank" rel="noreferrer noopener">the first</a> in the country to debut their bitcoin and ether ETFs via a joint effort. Those listings were <a href="https://cms.blockworks.co/australian-bitcoin-and-ether-etfs-delayed-due-to-standard-checks/" target="_blank" rel="noreferrer noopener">initially delayed</a> in April before being given the green light two weeks later. Australia-based <a href="https://cms.blockworks.co/cboe-australia-lists-cosmos-physically-settled-ether-etf-amid-market-woes/" target="_blank" rel="noreferrer noopener">Cosmos Asset Manager</a> later joined the fray, adding its own physically-settled bitcoin and ether ETFs to the list toward the end of May. 



&#8220;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,&#8221; 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 <a href="https://cms.blockworks.co/first-spot-crypto-etfs-in-australia-underwhelm-traders-amid-market-downturn/" target="_blank" rel="noreferrer noopener">trading volumes</a> among 21Shares&#8217; ETFs.



Still, the move marks a turning point in Australia&#8217;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.



&#8220;There are risks associated with investing in cryptocurrency-based products,&#8221; 3iQ CEO Fred Pye said in the statement. &#8220;These products are considered very high risk and investors should carefully assess their risk profile and seek their own financial advice before investing&#8221;



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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21Shares

3iQ Latest Crypto ETF Fund Manager To Join Australian Market

<div id="highlights-block_62954c51ede8b" class="highlights">
 <ul>
 <li>The ether ETF listing by Cosmos tracks the physically-settled Purpose Ether ETF in Canada</li>
 <li>The success of Purpose Investment&#8217;s ether ETF performance has prompted Cosmos to provide investors exposure, the company said</li>
 </ul>
 
</div>



Cboe Australia said Monday it has listed Cosmos Asset Management&#8217;s ether exchange-traded fund (ETF), despite volatile conditions that continue to plague the crypto market.



Cosmos Purpose Ethereum Access ETF (CPET) invests in Canada&#8217;s Purpose Ether ETF, which holds physically settled tokens instead of derivatives like futures or options.



Purpose Investment&#8217;s Ether ETF, a world first, came to market via the Toronto Stock Exchange in April last year following clearance from Canadian securities regulators. 



Since then, the fund has accumulated more than $409.9 million in assets under management. The Australian subsidiary of Cboe Global Markets is hoping to tap into the fervor surrounding Purpose&#8217;s ETF, with expectations of domestic investors responding in a similar fashion to Cosmos&#8217;.



“As investors continue to seek cryptocurrency exposure, it’s important the market provides them with choice and access,&#8221; said Cboe Australia CEO Vic Jokovic in a statement. &#8220;CPET offers Australians unique access to the world’s first physically settled Ether ETF and we’re excited to watch its progress.&#8221;



That view may be somewhat optimistic as declining interest has coincided with a drop in crypto prices. Earlier this month, the debut of <a href="https://cms.blockworks.co/first-spot-crypto-etfs-in-australia-underwhelm-traders-amid-market-downturn/" target="_blank" rel="noreferrer noopener">21Shares&#8217;</a> Australian spot bitcoin and ether ETFs fell short of market expectations, posting trading volumes of around $656,000 and $415,000 respectively.



On the same day, Bloomberg Intelligence Senior ETF Analyst Eric Balchunas called 21Share&#8217;s debut “shockingly timid” in a <a href="https://twitter.com/EricBalchunas/status/1524722087084105728" target="_blank" rel="noreferrer noopener">tweet</a>. Lack of interest has also not been the only roadblock facing Australian-based crypto ETFs.



In April, Cboe Australia decided to halt the launch of the Cosmos Purpose Bitcoin Access ETF, 21Shares along with ETF Securities citing “standard checks” as the primary reason for the <a href="https://cms.blockworks.co/australian-bitcoin-and-ether-etfs-delayed-due-to-standard-checks/" target="_blank" rel="noreferrer noopener">delay</a>. 



Not to mention, Australian-based Cosmos&#8217; newest ether ETF listing comes at a time when the markets have been checkered by periods of extreme volatility following a significant decline from peak prices witnessed late last year. 



The market is beginning to flash signs of a reversal amid a broader uptick in global commodities and equities. Bitcoin is once again <a href="https://cms.blockworks.co/crypto-markets-rally-as-bitcoin-reclaims-30000-once-again/" target="_blank" rel="noreferrer noopener">on the rise</a> above the $30,000 level. 



Still, more rallies are required to shore up investor confidence amid the current downward trend that has persisted since the bellwether crypto&#8217;s peak of around $69,000 in November.



CPET is available through Cboe Australia market participants and supporting Australian stockbrokers.



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Australia

Cboe Australia Lists Cosmos’ Physically-Settled Ether ETF Amid Market Woes

Ben Strack

<div id="highlights-block_625f26542e72b" class="highlights">
 <ul>
 <li>21Shares, which has products listed on 10 regulated European exchanges, will feature two spot crypto ETFs</li>
 <li>The firm’s pair of ETFs are set to launch the same day as a fund proposed by Cosmos Asset Management, which intends to invest in shares of a Canadian bitcoin ETF</li>
 </ul>
 
</div>



The first Australian ETFs to invest directly in bitcoin and ether are set to hit the market next week while US fund issuers continue to work with regulators to secure a listing.



Switzerland-based 21Shares, the world’s largest issuer of crypto exchange-traded products (ETPs), has teamed up with ETF Securities to launch the funds.



The ETFS 21Shares Bitcoin ETF (EBTC) and the ETFS 21Shares Ethereum ETF (EETH), which track the price of bitcoin and ether in Australian dollars, are fully backed by the respective assets held in cold storage by Coinbase.



Both ETFs are expected to list on the Cboe Australia exchange on April 27.



21Shares CEO Hany Rashwan told Blockworks the firm has been working to provide Australian investors easier access to crypto for years. Running the world’s longest-running spot bitcoin ETP, which launched in Switzerland in 2019, the firm has navigated everything “from contentious forks to stock splits,” he added.



“That valuable experience and deep data is consistently instrumental in all of our regulatory conversations,” Rashwan said. “There’s more to crypto than just bitcoin and ethereum, and we look forward to making the entire crypto world accessible and investable for everyone around the world.”



While ETFs investing directly in cryptoassets have launched across Europe, Canada and elsewhere, the products break new ground for Australia, whose regulators have previously viewed the digital assets as volatile and unfit for the country’s financial markets.



<a href="https://cms.blockworks.co/nfts-taxed-inadvertently-says-australian-senator-during-sydney-art-exhibit/" target="_blank" rel="noreferrer noopener">Some efforts</a> from the country’s political elite signal a willingness to work constructively with crypto proponents in a bid to usher in a new age for Australian investors backed by appropriate <a href="https://cms.blockworks.co/australia-seeks-licensing-of-crypto-exchanges-via-digital-services-act/" target="_blank" rel="noreferrer noopener">legal frameworks</a>.



Those promises are being bolstered by attempts to push the country’s forward-thinking approach toward greater digital asset adoption including the private sectors’ experimentation with the nascent asset class.



Last month, <a href="https://cms.blockworks.co/anz-becomes-first-bank-to-mint-australian-digital-dollar/" target="_blank" rel="noreferrer noopener">Australia’s ANZ Bank</a> became the first major financial institution in the country to issue and execute payment of a stablecoin linked to the nation’s dollar. A green light from the country’s primary clearing house marks yet another step along Australia’s journey to crypto adoption.



Indeed, the Australian Financial Review reported Tuesday that <a href="https://cms.blockworks.co/australia-gets-go-ahead-to-list-countrys-first-bitcoin-etf-next-week/" target="_blank" rel="noreferrer noopener">Cosmos Asset Management</a> would launch the country’s first bitcoin ETF on April 27. Instead of direct spot exposure, Cosmos’ fund is expected to invest in crypto through Purpose Investments’ bitcoin ETF — which launched on Canada’s Toronto Stock Exchange in February 2021.



21Shares has roughly $2.5 billion in assets under management. Its products are listed on 10 regulated European exchanges.



“Once we decided to build a range of crypto ETFs for the Australian market, there was only one partner we wanted to work with,” Graham Tuckwell, executive chairman of ETF Securities Australia, said in a statement. “[21Shares’] pioneering approach to secure investment in cryptocurrency has been emulated by other fund managers around the world.”



21Shares has launched a handful of ETPs this year, including products with Aave (AAVE), Chainlink (LINK) and Uniswap (UNI) as their underlying assets. Rashwan <a href="https://cms.blockworks.co/21-shares-expands-crypto-etps/" target="_blank" rel="noreferrer noopener">previously told Blockworks</a> that the firm aims to support what it considers to be the top 50 cryptocurrencies by the end of the year.



The pending launches come as the SEC continues denying spot bitcoin ETF proposals from US fund issuers. Crypto firm executives <a href="https://cms.blockworks.co/crypto-execs-read-the-tea-leaves-on-spot-bitcoin-etf-approval/" target="_blank" rel="noreferrer noopener">remain split</a> on when exactly such a product could be approved.



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