How are Australia’s Ethereum and Bitcoin ETFs faring on their first day?

The three crypto ETFs all offer investors direct exposure to the underlying digital tokens, but you won’t find them on the ASX.

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Australia’s first Ethereum (CRYPTO: ETH) and Bitcoin (CRYPTO: BTC) exchange-traded funds launched this morning.

In fact, after waiting patiently for what seems like years, today saw the launch of not one but three crypto ETFs. One offers direct exposure to Ethereum’s spot price while the other two are meant to mirror the Bitcoin price.

The Ethereum ETF goes by the name ETFS 21Shares Ethereum ETF (CXA: EETH). While the two Bitcoin funds are Cosmos-Purpose Bitcoin Access ETF (CXA: CBTC) and ETFS 21Shares Bitcoin ETF (CXA: EBTC).

Unlike prior crypto ETFs available Down Under, all three invest in the tokens themselves, intending to closely mirror the spot price.

Just take note that you won’t find any of them trading on the ASX. Instead, you’ll find them listed on the Cboe Australia exchange.

How are the Ethereum and Bitcoin ETFs tracking on day one?

Despite a big pullback in crypto prices – Ethereum is down 36% over the past week and Bitcoin has fallen 31% – there’s still a healthy appetite for the new crypto ETFs.

As at 3pm AEST, the Cosmos-Purpose Bitcoin Access ETF has seen $493,000 worth of trades. The ETFS 21Shares Bitcoin ETF has seen almost twice that value transacted, with $936,000 of trades.

Crypto investors are also clearly looking for ETF exposure to Ethereum as well, with $568,000 worth of trades in the ETFS 21Shares Ethereum ETF.

Two week delay brings fee waiver

If you expected to be able to invest in Cosmos’ new ETF two weeks ago, you’re not alone.

But the launch of the crypto ETF faced regulatory delays, which has seen Cosmos CEO Dan Annan waive management fees for the first two months.

According to Annan (quoted by the Australian Financial Review), “Investors have been eagerly waiting for Australia’s first bitcoin ETF for a long time. As reward for all of our investors, for their patience, or impatience, we are waiving the fees for the first two months.”

Two months without fees will certainly come as welcome news to crypto investors.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Ethereum. The Motley Fool Australia has positions in and has recommended Bitcoin and Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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