Australian crypto-focused ETF hits record, spot-based BTC, ETH ETFs expected

Source: iStock / Kileman

The first Exchange Traded Fund (ETF) focused on the crypto industry in Australia was launched on Thursday of this week and within 15 minutes of trading, a new record for trading volume was broken on the Australian Stock Exchange. Meanwhile, new regulations have opened the door for the introduction of spot-based Bitcoin (BTC) and Ethereum (ETH) ETFs.

The Crypto Innovators ETF launched by a local fund company BetaShares and traded under the ticker CRYP, recorded a trading volume of over AUD 8 million (USD 5.9 million) in just 15 minutes yesterday. By noon, the volume had increased further to A $ 24.5 million ($ 18 million) before closing the day with a daily trading volume of A $ 42 million ($ 30.95 million), market data showed.

The unusually high trading volume marked a new record for all ETFs listed on the stock exchange Australian Stock Exchange (ASX), Business Insider Australia reported on Friday.

Unlike the much-discussed Bitcoin futures ETFs launched in the US, BetaShares’ new Australian ETF does not aim to track the price of any particular cryptocurrency. Instead, the fund seeks broad exposure to “global companies at the forefront of the dynamic crypto economy,” according to the BetaShares website.

On November 4th, the ETF’s holdings consisted of well-known companies operating in all areas from crypto asset management to exchanges to mining companies. Among them were Mike Novogratz’s Galaxy Digital, the company of Bitcoin bull Michael Saylor MicroStrategy, and the US-based exchange Coin baseto name a few.

Source: BetaShares CRYP factsheet

CRYP thus mimics other ETFs that are launched elsewhere, such as Volt Equity’s ETF listed in the USA ticker BTCR, who have bypassed strict regulations regarding crypto ownership by instead offering engagement to crypto-focused companies.

BetaShares, the company behind CRYP, has now focused on bringing both a Bitcoin and Ethereum-backed exchange traded product (ETP) to the Australian market, the company’s CEO Alex Vynokur told Business Insider.

Vynokur stated that Thursday’s record-breaking ETF launch showed that there was a “significant” appetite for digital assets in Australia, and said the company was now working to build a number of ETFs that will direct the spot prices of BTC and ETH follow.

The CEO said the plans include “the expected rollout of the 1BTC and 1ETH” ETF, although no specific timeframe was given.

The plans to bring pure crypto-backed ETFs to the Australian stock market follow new guidelines on the matter from the Australian Securities and Investment Commission (ASIC) last month.

According to the new guidelines, companies wishing to launch crypto ETFs must adhere to a number of best practice guidelines, highlighting the safekeeping of digital assets as a key element.

CRYP went live on Thursday at 10:30 am local time on the ASX at a price of AUD 11.23 ($ 8.28) per share. As of Friday’s close in Australia, the ETF was trading at AUD 11.28 ($ 8.32), up 0.8% for the day.


Learn more:
– Australian regulator gives Bitcoin, Ethereum ETFs thumbs up
– First Bitcoin ETF switches to November contracts as competition increases

– The shares of MicroStrategy and Grayscale Bitcoin Trust are now competing with ETFs

– After the first Bitcoin ETF, Ethereum could be the next
– What you need to know about the Bitcoin Futures ETF

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