Another Day, Another ETF: The Growing Crypto Landscape in Australia
On a day that can only be described as a monumental move (or just Monday, but let’s not dull the excitement), Australia has welcomed two more cryptocurrency-backed exchange-traded funds (ETFs) to its shores. This brings the total number of crypto ETFs available for local traders to a grand total of six. Yes, you heard that right—six! Soon enough, they might just need a map to navigate the increasingly crowded ETF waters.
Meet the New Kids on the Block: 3iQ’s Latest Offerings
Launching on Cboe Australia, the Canada-based 3iQ Digital Asset Management has rolled out two shiny new spot ETFs: the 3iQ CoinShares Bitcoin (BTC) Feeder ETF and the 3iQ CoinShares Ether (ETH) Feeder ETF. These funds are like the cool cousins visiting from Canada, borrowing assets from their popular relatives listed in Toronto—because if you can borrow money, why not borrow cryptocurrencies too?
The Cold, Hard Reality of Cold Storage
Both of these fledgling ETFs are feeding off the underlying assets from their Canadian counterparts, which imply that they are holding BTC and ETH in the esteemed cold storage of the Gemini crypto exchange. Cold storage: it’s where your favorite cryptocurrencies go to take a long, well-deserved nap, away from the prying eyes of the market.
Not Just Another Face in the Crowd
3iQ’s offerings don’t just sprinkle more options on the ETF cake; they also bring a refreshing twist with the lowest expense ratio of the bunch—just 1.2%. That’s 0.05% lower than both the 21Shares and Cosmos ETFs, which are giving each other side-eye with their 1.25% expenses, reminiscent of a group project where one member has to do all the work (we see you, 21Shares and Cosmos).
Early Bird Gets the Worm? Not Quite!
Despite the expanding array of offerings, the original trio of ETFs from 21Shares and Cosmos didn’t exactly burst out of the gate. On their launch day, they mustered up a humble $1.3 million in trading volume—considerably lower than the boisterous $1 billion that had been anticipated. Apparently, everyone stayed in bed a little longer that morning. The 21Shares funds managed to capture around $936,500, whereas Cosmos’ Bitcoin fund netted approximately $398,000. Let’s just say the crypto market is a fickle creature!
A Look at Current Trading Volumes
Fast forward to now, and the 3iQ ETFs have seen a respectable amount of trading volume, with 13,592 shares of the Bitcoin ETF and 9,754 shares of the Ether ETF changing hands. This equates to approximately $73,415 and $73,605 respectively, totaling more than $147,000. Not quite blockbuster numbers, but hey, baby steps.
Conclusion: The Road Ahead
As Australia dips its toes further into the realm of crypto ETFs, traders have more choices than ever. While initial trading volumes might not have met lofty expectations, the growth of funds like 3iQ suggests that crypto is here to stay—at least until the next shiny financial product makes its debut. Stay tuned, folks; the crypto rollercoaster isn’t stopping anytime soon!
