Australia's first spot bitcoin, ethereum ETFs go live next week

21Shares and ETH Securities are teaming up to offer the country's cryptocurrency as US regulators drag their feet. The first Australian ETFs that invest directly in Bitcoin and Ethereum are set to hit the market next week as US fund issuers continue to work with regulators to secure listing Switzerland-based 21Shares, the largest issuer of crypto exchange-traded products (ETP), has teamed up with ETF Securities to launch the funds. Both EBTC and EETH track the price of Bitcoin and Ethereum in Australian dollars and are fully backed by private assets held by Coinbase in cold storage.

Both ETFs are expected to list on the Cboe Australia exchange on April 27. 21Shares CEO Hani Rashwan told Blockworks that the company has been working to provide Australian investors with easier access to cryptocurrencies for years. He added that the company, which runs the world's longest Bitcoin ETP platform, which was launched in Switzerland in 2019, has navigated everything "from controversial forks to stock splits." "This valuable experience and deep data is instrumental in all of our regulatory conversations," Rashwan said.

“There is more to it than just Bitcoin and Ethereum, and we are looking to make the entire crypto world available, accessible and investmentable for everyone around the world.” While ETFs that invest directly in crypto assets have launched across Europe, Canada and elsewhere, the products break new ground for Australia, whose regulators previously viewed digital assets as volatile and unsuitable for the country's financial markets. Some efforts by the country's political elite indicate that they are willing to work constructively with cryptocurrency supporters in an attempt to usher in a new era for Australian investors backed by suitable legal methods.

These promises are reinforced by attempts to push the country's forward-thinking approach towards greater adoption of digital assets including private sector trials of the emerging asset class. Last month, Australia's ANZ Bank became the first major financial institution in the country to issue and implement stablecoin payments pegged to the national dollar. The green light from the country's main clearinghouse represents another step along Australia's journey to embrace cryptocurrencies.

In fact, the Australian financial magazine reported on Tuesday that Cosmos Asset Management will launch the country's first Bitcoin ETF on April 27.

Instead of direct spot exposure, the Cosmos Fund is expected to invest in cryptocurrencies through Purpose Investments' Bitcoin exchange-traded fund – which launched on Canada's Toronto Stock Exchange in February 2021. 21Shares has approximately $2.5 billion in assets under management. Its products are listed on 10 regulated European stock exchanges.

Graham Tuckwell, CEO of ETF Securities Australia, said in a statement. “Once we decided to build a range of crypto ETFs for the Australian market, there was only one partner we wanted to work with,” “Our pioneering approach to securing cryptocurrency investment has been emulated by other fund managers around the world.” 21Shares has launched a few ETPs this year including products with (AAVE), (LINK) and (UNI) as its underlying assets. Rashwan previously told Blockworks that the company aims to support what it considers to be the top 50 cryptocurrencies by the end of the year. The pending launches come as the SEC continues to reject spot Bitcoin ETF proposals from US fund issuers.

Crypto company executives remain divided on exactly when such a product will be approved. Source –