Similarly to US investors, Australians displayed an enhanced appetite for cryptocurrency-related exchange-traded funds. Shortly after the launch of BetaShares’ CRYP, the volume went through the roof and set a new record.
Understanding BetaShares’ CRYP
Echoing the monumental day of the first Bitcoin Futures ETF debut on Wall Street, BetaShares Crypto Innovators ETF (CRYP) pierced through the existing record of $5.8 million within minutes as it debuted on the Australian Securities Exchange (ASX).
In fact, CRYPT went on to set a new high of more than $39.7 million by the end of the opening day. With this, the Australian crypto-based fund broke the astonishingly high record witnessed by Hyperion Global Growth Companies (HYGG) product for first-day volume in March 2021.
CRYP’s performance mirrors that of ProShares Bitcoin Futures ETF, which also saw a flying start. BITO had reportedly recorded $280 million in trading volumes in the first hour after going live.
The CRYP fund, which stands for Capital Appreciation Portfolio Diversification, essentially allows market players to gain exposure to 50 pure-play listed cryptocurrency companies worldwide. These include exchanges, mining firms, and equipment firms that supply the hardware and infrastructure that facilitate that mining activity for Bitcoin.
The main idea behind the fund is to address the crypto equities ecosystem, which boasts a large number of investors that are interested in Bitcoin (BTC) and Ethereum (ETH).
However, the problem with these players is that not many understand how to value them, while others may not be comfortable accessing them directly. A crypto equities ETF, on the other hand, can give this cohort of investors in Australia the much-anticipated exposure to the crypto sector via the ASX.
CRYP, for one, is focused on tracking the performance of an index that offers exposure to global companies. These include Silvergate Capital Cork (12.3%), Marathon Digital Holdings Inc (12.1%), Galaxy Digital Holdings (11.6%), Coinbase Global Inc (10.1%), MicroStrategy (9.2%), and others.
Spot Bitcoin in Australia isn’t far away
While the latest numbers are a testament to the rising optimism among Aussie investors with respect to crypto investment vehicles, the country is now looking forward to spot ETFs as well. Not long ago, the Australian Securities and Investment Commission (ASIC) issued positive guidelines for launching Bitcoin and Ethereum exchange-traded products.
Its counterparts in the US may not be excited to give the green light to fund managers aiming to launch Bitcoin spot-backed ETFs just yet, but the Aussie regulators seem more open-minded.