Canadian Challenger Joins Australian ETF Race

May 03, 2022, 10:15 AM AEST - 2 weeks ago

A Canadian challenger could blow open the Australian crypto exchange-traded fund (ETF) race as it moves to seize an opportunity to make history by listing Australia’s first ETF.

According to a report in the Australian Financial Review, Toronto-based 3iQ Digital Asset Management has applied to launch two ETFs after a technical delay held up rival investment houses. The crypto specialist firm lodged disclosure documents with the Australian Securities and Investments Commission (ASIC) late last week. These documents revealed its plans to list the 3iQ CoinShares Bitcoin Feeder ETF and 3iQ CoinShares Ether Feeder ETF on the Cboe Australia exchange.

The fund will give exposure to both Bitcoin and Ether by buying units in two of 3iQ’s existing ETFs, which are listed on the Toronto Stock Exchange and co-managed by London-based CoinShares. The funds will trade on Cboe under the tickers BT3Q and ET3Q.

Technical Challenges Delay ETF Race

Local issuers ETF Securities and Cosmos Asset Management had expected their pending ETFs to begin trading on April 27, but were unable to launch after Cboe told the market “standard checks” were still ongoing. Both ETFs are still yet to begin trading.

The hold-up was caused by a powerful but undisclosed “prime broker” who required more time to support the new asset class, forcing a delay in trading. This presented 3iQ with the opportunity to get ahead of its competitors and list Australia’s first ETF to be invested directly in digital assets.

Australian ETF Race Heats Up

Australia appears to be leading the ETF charge ETFs. In December 2021 the country saw its first spot crypto ETF, which launched through ETF Securities and 21Shares. Early last month, it was announced that Australia would soon receive its first Bitcoin ETF. Since then a slew of competitors – Cosmos Asset Management Bitcoin ETF, 21Shares Bitcoin ETF, and 21Shares Ethereum ETF – were set to follow suit by launching their own crypto ETFs.

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