Technology

21Shares and EFT Securities collaborate for novel ETFs tracking the AUD

  • EBTC and EETH would be the first spot ETFs tracking Ether and Bitcoin via the Australia Dollar 
  • Both ETFs are expected to go live on April 27 on the CBOE Australia exchange

Exchange-traded products (ETPs) specialist firm 21Shares has joined hands with ETF Securities to launch two exchange-traded funds (EFTs) tracking the two largest digital tokens.  

The two would be named the ETFS 21Shares Bitcoin ETF – EBTC and the ETFS 21Shares Ethereum ETT – EETH. They would be novel EFTs to track Bitcoin and Ethereum-native Ether using the Australian Dollar directly. 

The exposure to cryptocurrencies that the two products will offer customers will be entirely backed by Bitcoin and Ether held in cold storage at the Coinbase crypto. The tickers will go live on April 27, listing on the CBOE Australia Exchange.

What the ETFs offer 

Lauding the collaboration, ETF Securities Australia executive chair Graham Tuckwell said the new offering gives users a chance to engage with the volatile crypto markets of Ethereum and Bitcoin without having to delve into them. Tuckwell said his firm would alleviate all risk responsibilities and quell any regulatory requirements on behalf of their customers.

“Once we decided to build a range of crypto ETFs for the Australian market, there was only one partner we wanted to work with, and that’s 21Shares. Its pioneering approach to secure investment in cryptocurrency has been emulated by other fund managers around the world,” he said.

Kanish Chugh, the head of distribution, noted that the new crypto solutions will enable Australian investors to leverage exposure to the two biggest crypto tokens to diversify their portfolio while circumventing pitfalls such as low exchange quality.

“They may be used as an alpha tilts or side bets in a portfolio. They can also be bought as portfolio diversifiers, as they are completely different asset and uncorrelated to shares, bonds and commodities,” Chugh explained.

The Australian crypto scene

The launch of EBTC and EETH as the first ETFs in Australia comes when the mood around cryptocurrencies in Australia is softening up, with promptitude to regulate rather than shun virtual assets. 

Last month, the first stablecoin tracking the AUD was debuted by ANZ Bank. Also, the Australian Financial Review is reporting that Cosmos Asset Management’s Bitcoin ETF is set to start trading on Cboe Australia on April 27.


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