Last week, we took a look at the latest exchange-traded fund (ETF) that looks set to join the ASX boards. ETF provider BetaShares has announced that the ASX boards will soon be graced with the ASX’s first ever cryptocurrency-based ETF. It will be known as the BetaShares Crypto Innovators ETF (ASX: CRYP) and will give investors a way to invest in the ‘blockchain economy’.
As we covered last week, this ETF will be investing in a “portfolio of leading global companies at the forefront of the crypto ecosystem”. BetaShares tells us that this ETF will be designed to “capture the full breadth” of said ecosystem. It will do so by tracking an index that holds a “focused portfolio of more than 230 leading crypto innovators”.
We don’t know too much more than that at this stage. Aside from a teaser that this portfolio currently holds 3 crypto-based companies. These are Coinbase Global Inc (NASDAQ: COIN), Riot Blockchain Inc (NASDAQ: RIOT) and MicroStrategy Incorporated (NASDAQ: MSTR).
BetaShares Crypto Innovators ETF (CRYP) set to hit the ASX ‘soon’
Importantly, this CRYP ETF will not be holding cryptocurrency assets directly. So one won’t be able to use CRYP for direct exposure to cryptocurrencies like Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH) or Dogecoin (CRYPTO: DOGE).
BetaShares has said this has been done partly to save investors from the “complications of holding digital assets directly”. Instead, the CRYP ETF’s portfolio will give exposure to the companies that are involved in “building crypto mining equipment, crypto trading venues, and other key services that allow the crypto economy to thrive”.
This is in stark contrast to a recent ETF listing over in the US. This new fund does give investors a more direct opportunity to invest in the digital coins themselves, albeit using futures contracts. My Fool colleague Bernd went through this new ETF and its launch in depth yesterday.
So when will ASX investors finally get a chance to invest in the new BetaShares CRYP ETF?
Well, according to the provider, all we are getting at the moment is “soon”. BetaShares implies on its website that the Crypto Innovators ETF has yet to receive “final regulatory approval”. So the launch of this ETF is presumably hinging on that.
I’m sure they’ll be some investors who are champing at the bit. Bitcoin just hit a new all-time high overnight of over US$66,000 per coin. It’s up an incredible 62% over just the past month alone.