Australia’s first direct Bitcoin and Ethereum ETFs are launching

Do you want to invest in cryptocurrencies but don’t want to buy them yourself? There’ll soon be a way to just purchase shares in them.

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Finally it’s happening.

For the very first time, Australian investors will be able to invest in Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) without actually buying the cryptocurrencies themselves.

Local provider ETF Securities is the first to make this happen for the Australian market, in conjunction with European cryptocurrency manager 21Shares.

The two funds will be called ETFS 21Shares Bitcoin ETF (Chi-X: EBTC) and ETFS 21Shares Ethereum ETF (Chi-X: EETH).

“Australians wanting to buy Bitcoin and Ethereum have historically been forced onto unregulated crypto exchanges,” ETF Securities stated in an email to customers.

“But with the launch of Bitcoin and Ethereum ETFs, investors will be able to trade on highly regulated exchanges.”

While the two ETFs are coming soon, an exact launch date has not yet been disclosed as some regulatory red tape is still pending.

The cryptocurrency revolution is not happening on the ASX

The Motley Fool has confirmed the funds will be hosted on Australia’s second biggest market Chi-X, rather than the ASX.

Chi-X shares are available on most online stockbroking platforms, such as Stake, CMC Markets, Superhero, Selfwealth Ltd (ASX: SWF), NABTrade, AusieX, CommSec and Pearler.

It is understood there are still some regulatory difficulties with listing blockchain and cryptocurrency-related shares on the ASX.

ETFS head of distribution Kanish Chugh told The Motley Fool last month that ETFS Fintech & Blockchain ETF (Chi-X: FTEC) debuted on Chi-X to get the product out to market faster than its rivals.

“We felt there were potentially some hurdles, at the time, with the ASX,” he said.

“We really wanted to say ‘Investors want this strategy — how can we get it to market?’ And Chi-X were working quite closely with us around that… we’d get this out to investors quicker.”

New cryptocurrency research centre for Australians

21Shares has nearly US$3 billion of funds under management across 20 European cryptocurrency exchange-traded products already.

“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,” ETF Securities executive chair Graham Tuckwell. 

“They are the cutting edge of crypto ETPs in the world today.”

The two partners are also launching a cryptocurrency “research and education centre” for Australian investors.

The information hub will cover not just Bitcoin and Ether but the more obscure currencies such as Solana (CRYPTO: SOL), Polygon (CRYPTO: MATIC) and Avalanche (CRYPTO: AVAX).

“The research centre will explain in simple English how the often-complicated world of blockchain works,” stated ETF Securities.

“It will also feature the bleeding edge news on crypto, various blockchain metrics, price action and important news on miners, custodians and other companies in the supply chain.”

Motley Fool contributor Tony Yoo owns shares of Bitcoin and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin and Ethereum. 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.

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