3iQ may launch first Australian ETF on cryptocurrencies and bitcoin (BTC)

Toronto-based 3iQ Digital Asset Management could make history by launching Australia’s first cryptocurrency-traded fund after taking advantage of a technical slowdown that prevented rival investment firms from launching two ETFs in the local stock market. to striveincluding one on bitcoin (BTC) and ether (ETH).

A first cryptocurrency ETF in Australia

As ETFs and other financial instruments proliferate in the United States, especially with Fidelity Investment’s new ETFs on cryptocurrencies and the metaverse. Australia does not yet have this indispensable tool to connect traditional finance with crypto financing.

However, last week Canadian company 3iQ filed disclosure documents with the Australian Securities and Investments Commission (ASIC) to list the 3iQ CoinShares Bitcoin Feeder ETF and 3iQ CoinShares Ether Feeder ETF on the exchange.

Both products provide exposure to the respective cryptocurrencies through shares purchased on 3iQ’s existing ETFs listed on the Toronto Stock Exchange. Documents filed with ASIC reveal that 3iQ’s customer base would be limited to self-managed pension funds, which would limit access but could speed up the application process.

Australian firms ETF Securities and Cosmos Asset Management planned to launch three cryptocurrency ETFs on Cboe on April 27, but faced last-minute delays from downstream service providers. Go here to learn more about the different ETFs.

cryptocurrency australia

A first-mover advantage

The first mover in this new niche could see flows of more than $1 billion in early trading, some analysts say, as retail and institutional investors seek regulated exposure to digital asset markets. However, this won’t happen if the reports indicating this ETF would be reserved for self-managed retirement funds turn out to be true.

But others speculated that the 3iQ funds would likely be listed alongside the pending Cosmos ETF given their similar structure. The Cosmos Purpose Bitcoin Access ETF will buy shares of the existing Purpose Bitcoin ETF, which is also listed in Toronto and describes itself as the “first physical settlement bitcoin ETF” in the world.

On the other hand, the two ETF Securities funds being developed are intended to invest in a sub-fund that has direct interests in bitcoin and Ethereum, stored offline in a Faraday cage to fight cybercrime. Investments in ETF securities funds can be exchanged for crypto assets.

Faraday’s cage technology to protect its cryptocurrencies

The Casa company had released “Faraday cases” for cryptocurrency hardware wallets in 2019 — protective cases designed to block electronic signals often associated with the remote erasure or alteration of data stored on hardware devices.

We couldn’t see anyone else deliver a good enough case. So we went to extremes and found a pro on the market and designed this togethersaid CEO Jeremy Welch.

Previously, this technology was almost exclusively used by the military, but in recent years we have noticed that more and more investors want to protect their cryptocurrencies as well as possible. It is therefore this technology that will be used by the two ETF Securities funds.

Australia is about to see several ETFs coming, with different uses and investor audiences. In this rather complicated period for cryptocurrencies, this could be a good sign for a resumption of massive investment.

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Alexis Patin

Observer of the social, economic and financial revolution powered by cryptocurrencies, defi and metaverses.

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