Australian fund manager BetaShares’ new crypto ETF has smashed records of the Australian Securities Exchange (ASX) within the first 15 minutes of listing.
Existing record only stood for a few minutes
The fund’s Capital Appreciation Portfolio Diversification (CRYP) allows investors to gain exposure to 50 pure-play publicly traded crypto companies from around the world. For example, exchanges, mining companies and equipment companies.
Some of the top companies on CRYP are Galaxy Digital (12.0%), Marathon Digital (11.3%) and Coinbase Global (10.7%). Silvergate Capital (10.2%) and Microstrategy (9.4%) also fall under the category of top companies. Investors blasted through the existing ETF record within minutes. The record stood at €5.03M (A$8M) and rose to a total of almost €27.15M. This happened towards the end of opening day. It indicates a huge, pent-up demand for crypto exposure on the ASX.
The CEO of Australian crypto investment platform Zerocap Ryan McCall said CRYP’s success came as no surprise. McCall explained the Australian appetite for crypto over the past 12 months.
Demand from high net worth individuals, family offices and advisors has really risen. It looks like this will accelerate with institutional adoption. A spot Bitcoin ETF in Australia is not far away. Followed by Ethereum and possibly other cryptocurrencies
He added: “A spot Bitcoin ETF in Australia is not far off, followed by Ethereum and possibly other cryptocurrencies.”
Reluctant look from Australia
The Australian Securities and Investment Commission (ASIC) has just given the preliminary green light for the launch of Bitcoin and Ethereum ETFs. Provided that a long list of guidelines is followed.
CRYP’s success mirrors the launch of ProShares’ Bitcoin Strategy ETF. The CRYP marked the first Bitcoin futures-based ETF in the US. The October launch saw approximately $870 million in volume on opening day. A total change of ownership of no less than 24.313 million BITO shares.
However, US regulators seem reluctant to approve a spot Bitcoin ETF. The EFT contains the real Bitcoin instead of futures contracts. This puts Australia at the forefront.
McCall said Bitcoin futures ETFs are “an inferior product to spot Bitcoin. The price is decoupled from the underlying asset. Hopefully the regulators will see that and we will go straight to ridicule.” Earlier this week, the Commonwealth Bank of Australia announced plans to support trading of 10 crypto assets on its app. The app has 6.5M active users.