Bitcoin mania down under: Is the new crypto miners ETF (DIGA) listed on the ASX?

Exchange traded funds are increasingly open to tracking crypto markets.

| More on:
A hand reaches across the cosmos to touch a bitcoin in the stars

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Bitcoin (CRYPTO: BTC) mania has reached Australia’s listed markets.

It comes in the form of a new exchange-traded fund (ETF).

Run by Cosmos Asset Management, the Cosmos Global Digital Miners Access ETF (DIGA) began trading in Australia yesterday.

DIGA doesn’t aim to track the price of Bitcoin, or any altcoin, for that matter. Instead, as the name implies, it aims to track the prices of a basket of cryptocurrency mining and infrastructure companies.

To answer the question posed in our headline, DIGA does not trade on the ASX. It listed yesterday on the ASIC regulated Aussie exchange Chi-X.

If you’re unfamiliar with the alternate exchange, here’s a simple explanation from CommSec, “Chi-X Australia is an alternative trading venue to ASX TradeMatch on the ASX which uses its own trading system and provides trading in a subset of ASX listed securities.”

Cosmos CEO on DIGA

Explaining why the company decided to launch DIGA, Cosmos CEO Dan Annan said (quoted by the Australian Financial Review), “For too long, investors have had to weigh up access to the growth of digital assets such as cryptocurrencies with the risks associated with investing through unregulated structures.”

Investing in DIGA, Annan said, “means investors do not have to directly hold cryptocurrencies and, importantly, provides Australians with the ability to access the potential upside of the next wave of financial market innovation.”

The ETF holds some 30 shares, including Riot Blockchain, Marathon Digital Holdings and Hut 8 Mining Corporation. These companies generate much of their revenue from cryptocurrency mining and transactions, dominated by Bitcoin.

No direct Bitcoin ETF for Australia… yet

If you were hoping for a direct Bitcoin ETF listed in Australia – akin to the futures-based ProShares Bitcoin Strategy ETF (NYSE: BITO) that launched with great success in US markets last week – get in line.

As the AFR notes, Annan had hoped, and still hopes to, launch an ETF that directly invests in Bitcoin. “There has been pent-up demand for a bitcoin ETF for some time. That is still in the works with the regulator and exchanges but we began looking at ‘what is the alternative?'”

But Aussie regulators aren’t racing to give a Bitcoin ETF the green light.

According to Chi-X CEO, Vic Jokovic, “There are fund managers that are ready. The hold-up is that it’s just not clear in whose wheelhouse regulation sits. There are a lot of people waiting for clarity from the government or regulator.”

The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Cryptocurrencies

a shiba inu dog looks happily at eh camera with his tongue out while his owner hods him on his chest as he sleeps on a hammock.

Here’s why the Dogecoin price has had such a great week

Economic data out of the United States and a surprise announcement by BlackRock offered some healthy tailwinds to cryptos over…

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price

Why this Bitcoin maximalist says all other ‘crypto is a scam’

Initially introduced in a 2008 whitepaper by one or more people going by the pseudonym of Satoshi Nakamoto, Bitcoin launched…

Read more »

A hand reaching into a computer to grab digital money, indicating a rise in the use of cryptocurrency

Why an RBA-issued crypto-like currency could soon be a reality

The RBA is piloting a central bank-baked digital currency.

Read more »

A male investor wearing a white shirt and blue suit jacket sits at his desk looking at his laptop with his hands to his chin.

Can the Bitcoin price reach US$30,000 again in 2022?

Rising interest rates have resulted in significantly less institutional investor interest in cryptos.

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.

Could this key metric signal more bad news for the Bitcoin price?

Crypto investors are keeping a close eye on the signals that could see the US Federal Reserve begin to ease…

Read more »

Man sitting at a desk facing his computer screen and holding a coin representing discussion by the RBA Governor about cryptocurrency and digital tokens

Is it smart to use dollar cost averaging to buy Bitcoin?

Should investors consider a DCA strategy for cryptocurrencies like Bitcoin?

Read more »

A hip young guy works at his home workstation with two screens and a gamers chair, keeping an eye on his crypto investments.
Share Market News

Bitcoin price dips in August after soaring 22% in July. What’s going on?

The greater presence of institutional investors in crypto markets looks to be adding to the correlation between cryptos and other…

Read more »

A very sad beagle cross dog lays dejectedly on a sofa with his short legs stretched out in front of him in a pose of flat defeat as he stares sadly at the camera.

Expert panel slashes 2022 outlook for Dogecoin price. Here’s why

Originally created as a joke, Dogecoin still has a market value of nearly US$9 billion despite crashing 91% from last…

Read more »