Doug Goodwille from Kayne Anderson speaks to Drew Meredith from The Inside Network on market thinkers.
While a surging gold price is on hold as the world adjusts to a Trump presidency, all the factors that saw its price rise more than 50 per during his first term in office – trade disputes, fiscal deficits and geopolitical tensions – are almost certainly guaranteed the second time around.
Australia’s first Bitcoin ETF set to launch
The moment the investment world has been waiting for has come. ETF Securities is set to be the first Australian ETF provider to launch a listed strategy that tracks the spot prices of two of the world’s largest cryptocurrencies, Ethereum and Bitcoin.
Subject to regulatory approval, ETF Securities will launch into the crypto world, forming a world beating partnership with 21Shares, which is the largest crypto ETP provider, based in Europe. The agreement will see ETF Securities launch Australia’s first Bitcoin and Ethereum ETFs and a best-in-class blockchain research and education centre.
The two listed funds are:
- ETFS 21Shares Bitcoin ETF (EBTC)
- ETFS 21Shares Ethereum ETF (EETH)
The ETFS 21Shares Bitcoin ETF and ETFS 21Shares Ethereum ETF will provide Australians with a way to invest in Bitcoin and Ether, via funds operated by ETF Securities, in partnership with 21Shares. BTC and ETH had been two of the best-performing assets of the past decade and regulations on both have brought added interest into the asset class.
“Zurich-based 21Shares currently has almost US$3 billion in assets under management inside its 20 European crypto ETPs (exchange-traded products) and total 80 listings. The firm has managed Bitcoin and Ethereum ETPs for almost three years and created the world-first physically-backed crypto ETP in 2018,” says ETF Securities.
Graham Tuckwell, executive chairman of ETF Securities Australia, said, “Once we had decided to build a range of crypto ETFs for the Australian market, there was only one partner we wanted to work with and that’s 21Shares. They are the cutting edge of crypto ETPs in the world today.”
Currently Ethereum is outperforming Bitcoin by the largest percentage gain this year following the launch of the Ethereum network in 2015 as an alternative to the original cryptocurrency. Both have set record highs this month, with Ethereum up 530 per cent since December, compared to 200 per cent gain in Bitcoin. Bitcoin’s market capitalisation is, however, double that of Ethereum at about $US1.1 trillion ($1.6 trillion) according to data from CoinMarketCap.com.
The research and education centre that the partnership will look to build will explain how the complicated world of cryptocurrency works, in plain English. It will also feature ongoing and up-to-date news on crypto, blockchain metrics, prices and other important news on miners.
Hany Rashwan, CEO at 21Shares said, “We are excited to partner with ETF Securities Australia to launch crypto ETFs for Australian investors. This partnership is an opportunity to combine our expertise to provide the simplest and most transparent way to access the best-performing asset class of the last ten years.”
Once they receive final approval, both ETFs are set to trade on the Chi-X exchange.
