Australian Securities Exchange to launch crypto-related ETF

Hot on the heels of a similar exchange-traded fund being approved in the U.S., the Australian Securities Exchange is close to launching the “BetaShares Crypto Innovators ETF,” which will grant exposure to global companies working in the digital asset space, according to the Financial Review.

Fast facts

• Using the ticker “CRYP,” the ETF aims to track the Bitwise Crypto Industry Innovators Index which underpins another ETF on the New York Stock Exchange. The companies it tracks include leading international exchanges such as Coinbase, mining company Riot Blockchain and MicroStrategy — which is the public company with the largest Bitcoin holding in the world, with ownership of more than 110,000 BTC.

• BetaShares chief executive Alex Vynokur told the Financial Review the process to have the ETF approved by the ASX was very lengthy. “But the genuine investor demand is growing and it makes sense for us to offer them exposure to the most important development since the launch of the internet,” he said. Vynokur added the firm aims to release a crypto-backed ETF, but believes approval for that is still a while away as the country currently lacks proper regulatory framework to allow it.

• Australia is currently in the midst of a Senate inquiry into improving the country’s regulatory approach to cryptocurrency. While public submissions to the Committee on Australia as a Technology and Financial Centre closed in June, it has continued to hold hearings on the matter and is expected to hand down its third and final report at the end of October. While creating regulation for the creation of a crypto ETF is not explicitly part of the inquiry’s remit, improved regulation in the crypto industry in general could pave the way for one in the future.

• Just last week, the U.S. Securities and Exchange Commission approved a similar product called the “Volt Bitcoin Revolution ETF,” which grants exposure to companies with significant holdings in Bitcoin, such as Tesla or PayPal. While the country waits for approval for a fully-fledged Bitcoin ETF, neighboring Canada has not only approved multiple Bitcoin ETFs, but has also launched multiple Ethereum ETFs this year.