ETF Securities compares Australian crypto ETFs to a gold product they launched 20 years ago
Australia’s first cryptocurrency exchange-traded funds (ETFs) began trading on May 12, and many industry watchers consider this a significant turning point for the digital asset market in Australia, if not globally.
Speaking to CNBC, Graham Tuckwell of (ETF) Securities discussed recently launched crypto ETFs in Australia on May 18. These ETFs are listed on the CBOE Exchange and fully backed by assets held in cold storage, while tracking the Australian dollar price of Bitcoin and Ethereum, respectively.
Tuckwell said in the interview:
“It’s very similar to the gold product we launched almost 20 years ago that led to all the major gold ETFs in the world.”
When asked if there were any facilities present, which could potentially even out price swings, Tuckwell explained:
“We’re trying to give people the type of physical support Bitcoin and Ethereum have. We’re certainly not trying to apply a derivative overlay to them. We want to give people a security that matches 1 to 1 with the underlying investment they are trying to gain exposure to.
Reception for ETFs was mixed as global crypto markets were rocked by the collapse of the stablecoin UST.
Elsewhere, Tony Sycamore, senior market analyst for City Index, told Bloomberg:
“There are strong signs of capitulation in crypto this week, which often proceeds to rebound. Assuming the rally gains traction, this will help gain support for newly listed ETF products as well as continued broader adoption.
ETFs in a sense offer a simpler alternative to crypto exposure for less tech-savvy investors who want to avoid know-your-customer (KYC) procedures or open various crypto wallets to have their assets transferred to them.
Time will tell if these products arrived at the right time and if they will usher in an era of crypto ETFs.
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