BetaShares Crypto Innovators ETF Crypto-Equity Fund Breaks ASX Record in Fifteen Minutes

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The fund is part of a global rush to give investors access to volatile but lucrative crypto markets in a regulated format. ETF investing in bitcoin futures, managed by US firm ProShares, broke 18-year record by amassing $ 1 billion in assets within two days of listing on the New York Stock Exchange last month .

CRYP is the first ASX-listed investment product to offer exposure to crypto markets, but does not invest directly in digital tokens or apps.

Instead, the fund will buy shares of companies listed on global stock markets and with a market capitalization of at least $ 100 million that serve the “digital asset economy”.

“In its own category”

Its largest holdings include the Nasdaq-listed trading platform, Coinbase, and Silvergate Capital Corporation, a specialist bank for crypto-related organizations. The fund will be passively managed and will track the Bitwise Crypto Industry Innovators Index, which returned 470% in the 12 months ended October 31.

Mr Vynokur, who has now listed 64 ETFs on the local equity market since 2010, said demand for the crypto-linked fund exceeded the level of investor interest in funds giving exposure to any other class. ‘assets.

“We’ve had a number of successful launches over the decade, we’ve had flops, but the Crypto Innovators fund is completely in its own category,” Mr. Retail Investors, High net worth individuals and Institutional investors said. .

This is a milestone for the local ETF market, which jumped 76 percent in the 12 months leading up to September 30 and now has $ 125.3 billion in investor assets.

There is no doubt that cryptocurrency is now mainstream.

– Cath Whitaker, CEO, SelfWealth

This growth has been accelerated by the entry of new and young investors participating in the stock markets for the first time amid the coronavirus pandemic.

The BetaShares CRYP fund was the most traded security on the Superhero investment platform on Thursday, and Millennials were the most eager to buy, followed by Gen Zers. Only one Superhero client sold shares of CRYP on Thursday.

CRYP accounted for 14% of transactions on the millennium-focused Pearler platform, with equal demand from male and female investors.

Rival platform SelfWealth facilitated $ 2.4 million of purchases in the fund and no sales. “There’s no question that cryptocurrency is mainstream now,” said Cath Whitaker, managing director of SelfWealth, which in July became the first online broker in the local market to announce it would add trading functionality. direct in crypto assets.

This was spectacularly followed this week by confirmation from the Commonwealth Bank that it would allow its customers to hold and trade bitcoin, ethers and other as yet undisclosed cryptocurrency through its banking app, as reported for the first time by the Financial Review.

ASX U-turn

This is a milestone for ASX, which has been seen as slow to embrace the nascent crypto asset market, with several leading Australian cryptocurrency firms opting to list instead in the ‘foreigner.

An ASX spokesperson said, “Today’s listing is a positive development. This reflects ASX’s evolving approach to this new asset class, which balances the interests of issuers and investors, while maintaining the high standards of the Australian market.

Although CRYP is the first crypto-linked ETF on the ASX, several competitors have listed on rival Chi-X in recent weeks.

Crypto-specialist Cosmos Asset Management – which is led by former BetaShares director Dan Annan and owned by US-listed Australian crypto miner Mawson Infrastructure, has listed a bitcoin miners’ fund on Chi-X last week.

Cosmos’ DIGA fund, which has amassed $ 1.3 million in trading volume since its listing, tracks an internal index it said was “purer” than other incarnations by omitting impartial trading with few exposure of the balance sheet to cryptocurrencies.

Asked to respond, Vynokur declined to comment on competitors, but said CRYP’s inclusion of a wide range of service providers in the crypto market was the “right way to go.”

“Like any gold rush, you’ll always have people trying to find gold and find the winning cryptocurrency, but it’s really the pickaxes and shovels that power the ecosystem,” did he declare.

ETF Securities has also listed a “fintech and blockchain” ETF on Chi-X, which includes crypto-related stocks as well as a wider range of fintech and payments companies.

BetaShares has asked to list two separate bitcoin and ethereum-backed ETFs with ASX and is in a race against Cosmos, VanEck, Monochrome Asset Management and others to list the first fund that actually invests directly in digital assets. .

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