Australia Will Introduce Its First Cryptocurrency ETF Soon

ByTroy Morris

Nov 9, 2021

During a raging enthusiasm for the approval of a Bitcoin-ETF within the U.S., the ASX (Australian-Securities-Exchange) is prepared to introduce its initial crypto-focused ETF. BetaShares (an ETF provider based in Australia) is near to issue the “BetaShares-Crypto-Innovators-ETF,” the ticker code of which will be “CRYP.” Nonetheless, rather than being straightforwardly backed by cryptocurrencies, the focus of the fund will be the global firms operating in the virtual asset space, according to the announcement of the company.

The fund targets to deliver indirect exposure of cryptocurrency to the institutional investors that are pursuing to deposit their respective capital into the crypto space with having the least risk factor. The announcement additionally quoted the saying of Alex Vynokur (the CEO of BetaShares) that the digital economy is extremely dynamic and expediting swiftly as it is built with the utilization of disruptive and exciting technology. He further stated that CRYP would prove to be an advanced method for the depositors to acquire exposure to the sector of cryptocurrency in a cost-effective, liquid, and familiar ETF structure.

It also specified that the tracking of an index containing a concentrated portfolio of above 30 prominent crypto innovators would be the target of CRYP. The name of the index is the “Bitwise-Crypto-Industry-Innovators-Index,” the launch of which occurred in the earlier period of this year for providing investors with a comprehensive exposure to the highest publicly listed companies that are operating in blockchain and crypto industries. The announcement further elaborated that the noticeable crypto exchanges and mining companies such as Riot Blockchain, Coinbase, and MicroStrategy (of Michael Saylor) are the constituents of the present index. Additionally, the fund’s 85% is opened to the firms that collect almost 75% of the revenue thereof from such industries to guarantee an appropriate exposure for its investors.

Although the firm had to wait for approximately six months since the filing of its initial CRYP’s approval, it seems that the company could have to hold on much longer for its ETF (that is backed by cryptocurrencies). According to a report published in the “Australian-Financial-Review,” the firm is even now targeting the release of a similar ETF nevertheless is experiencing many regulatory hurdles in the respective path. It had also been noted by the agency that the scarcity in regulation was hindering the approval of the crypto-ETFs.

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