Crypto Equities ETF Could Be Trading on ASX in Weeks

October 15, 2021, 10:15 AM AEST - 3 days ago

According to a recent announcement, Australian investors may soon be able to gain exposure to crypto through a newly created exchange traded fund (ETF). While this is exciting news, it isn’t quite what investors had expected.

Crypto Equities ETF, Not a Crypto ETF

Rather than providing exposure directly to crypto assets, the soon-to-be-released BetaShares Crypto Innovators ETF (ticker symbol CRYP) will provide “investors with exposure to a portfolio of global companies at the forefront of the rapidly emerging crypto economy”.

According to Betashares:

CRYP’s index is designed to capture the full breadth of the crypto ecosystem, by providing exposure to pure-play crypto companies, those whose balance sheets are held at least 75 percent in crypto-assets, and diversified companies with crypto-focused business lines.

Betashares announcement

The current index constituents include NASDAQ-listed Coinbase (COIN), Bitcoin mining company Riot Blockchain (RIOT) and, of course, Michael Saylor’s business intelligence firm MicroStrategy (MSTR).

When Will the Australian Crypto ETF Arrive?

The short answer is, it remains unclear. While countries like Canada and Brazil have crypto ETFs, both the US and Australia have been lagging behind.

As Crypto News Australia reported earlier this year, an Australian ETF is expected to be approved by year’s end. If approved, the ASX has said it would be limited to blue-chip digital assets, meaning that memecoins such as DOGE will certainly be excluded.

In the US, there are close to 30 crypto ETFs awaiting approval and several are expected to be given the tick within the next 60 days. This has left market commentators speculating as to whether such approval has been priced in, or whether it’s just another example of “buy the news, sell the rumour”.

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