Bulk debut opens ASX doors to other crypto listings

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Investors can gain exposure to the crypto market now, of course, through the Betashares Crypto Innovators ETF (exchange-traded fund).

I don’t think speculating in currency is a bad thing, we have that with gold we have that with oil futures, we have a range of these asset classes.

ASX’s Max Cunningham

Cunningham suggests that ETFs are a priority. “We are in the process of finalizing what we think the underlying Bitcoin, and other crypto-type assets, will look like in the ETF space.”

Launched in November of last year, Betashares Crypto Innovators ETF provides exposure to listed global companies in the crypto economy.

This includes crypto brokerage firm Coinbase, Bitcoin miners, and other companies helping to build crypto infrastructure – the so-called providers of pickaxes and shovels to the crypto gold rush.

“It’s designed to capture publicly traded companies around the world building the infrastructure that allows the crypto economy to buzz,” said Matt Hogan of Bitwise Asset Management. Hogan helped design the index fund.

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Bitcoin mining picks and shovels – the equivalent of investing in suppliers of mining and mining equipment into the mainstream economy – is a theme the ASX embraces as it seeks crypto exposure for investors. .

“There’s a range of people in all of these pick and shovel companies that we engage with. I might add, good quality operators, with proven business models with strong revenues and management teams, ”said Cunningham.

But Block / Afterpay’s debut later this month will give investors immediate access to a group with significant crypto activity – it made $ 1.8 billion in revenue from trading Bitcoin in its latest quarterly result. .

Block owns 8,000 Bitcoins and is developing a wallet for Bitcoin storage, an open and decentralized platform for exchanging Bitcoins.

The question is, which companies will follow his example?

ASX doesn’t name any companies it is in talks with, but there are competitors who have completed recent rounds of funding with expectations of an IPO this year.

Kieran Warwick, 32, has joined the ranks of the country’s billionaires thanks to Illuvium.Credit: Louie Douvis

This includes Firmus Grid, based in Tasmania. He is backed by Sino Gold founder Nick Curtis, who was also an instrumentalist for rare earth band Lynas. The company is promoting itself as a renewable energy based cloud service provider and Bitcoin miner.

And while the ASX finally embraces crypto investing, recent comments from Illuvium co-founder Kieran Warwick – on a podcast with Jarden Group analyst Elise Kennedy – highlight the challenges as the market operator tries to determine what risks for the investor he is willing to accept.

Like Animoca, Illuvium is striving to give players true digital property rights for the first time. But you need the game first. “We’re valued at something like $ 8 billion right now and our game hasn’t even released yet,” Warwick told the podcast.

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