Both of 3iQ Digital Asset Management’s new Australian exchange-traded funds will be based on its existing Bitcoin and Ethereum ETFs listed on the Toronto Stock Exchange.
On Monday, Cboe Australia announced the addition of two more cryptocurrency-backed exchange-traded funds (ETF) to its market, bringing the total number of crypto ETFs accessible to Australian investors to six.
The Toronto-based 3iQ Digital Asset Management has introduced two spot ETFs, the 3iQ CoinShares Bitcoin (BTC) Feeder ETF and the 3iQ CoinShares Ethereum (ETH) Feeder ETF.
Both of the Australian funds are invested in the firm’s Canadian ETFs, which are listed on the Toronto Stock Exchange (TSX), 3iQ CoinShares Bitcoin ETF and 3iQ CoinShares Ether ETF. The Gemini crypto exchange’s underlying assets are BTC and ETH holdings held in cold storage.
One of the six initial Bitcoin/Ether-backed ETFs, Bitwise Composite (BITW) rose a more modest 10 percent. Its launch was delayed by an unnamed service provider required to support the debut of Cosmos Asset Management’s funds, which also include The Paradigm Shift and is sponsored by 21Shares and Cosmos Asset Management.
The assets underlying the Cosmos ETFs are direct investments into the Canadian Purpose Bitcoin and Ether ETFs, whereas 21Shares’ funds are backed by Coinbase’s cold storage reserves.
The expense ratio of 3iQ is 1.2 percent, which is lower than the 21Shares and Cosmos ETFs (each with an expense ratio of 1.25%).
The three original funds by 21Shares and Cosmos had a sluggish start to trading, with $1.3 million in volume on the day of launch, far below the expected $1 billion of incoming money. The two 21Shares funds received a total of around $936,500 in combined inflows, while the Bitcoin fund from Cosmos attracted just over $398,000 in investment.
According to Cboe data as of the time of writing, the two 3iQ ETFs have seen volumes of 13,592 and 9,754 Bitcoin and Ether ETF shares traded, totaling around $73,415 and $73,605 respectively.
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