Cryptocurrency ETFs to launch

By Penny Pryor

ETF Securities will shortly list bitcoin and ethereum exchange traded funds on Cboe Australia (formerly Chi-X), in an Australian first.

The ETFs will provide investors direct access to cryptocurrency investments.

ETF Securities has partnered with European fund manager 21Shares to enable the launch of ETFS 21Shares Bitcoin ETF and ETFS 21Shares Ethereum ETF.

21 Shares has been managing cryptocurrency exchange traded products since 2018 and currently has US$2.5 billion of assets under management.

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

The ETFs will give Australian investors a means of trading cryptocurrency in a regulated environment, without the need to establish and maintain their own cryptocurrency wallets.

Certain cryptocurrency ETFs have been allowed in Australia since late last year when the Australian Securities and Investments Commission issued guidance that allowed for their creation.