A new ETF on the spot price of Bitcoin has been launched in Australia.
New ETF based on the spot value of Bitcoin arrives in Australia
It is called 3iQ CoinShares Bitcoin Feeder ETF (BT3Q), and it has been launched by 3iQ.
3iQ is Canada’s largest digital asset fund manager and in addition to the Bitcoin spot ETF, it has also launched an Ethereum ETF, 3iQ CoinShares Ether Feeder (ET3Q).
The two ETFs are domiciled in Australia and already listed on Cboe.
Both will act as a “feeder fund” providing access to the 3iQ CoinShares Bitcoin ETF and the 3iQ CoinShares Ether ETF domiciled in Canada through a dual regulated fund structure. The latter are listed on the Toronto Stock Exchange.
By now, several spot Bitcoin ETFs are available on the Toronto Stock Exchange, while none have yet been authorized by the SEC in the US.
It is difficult to understand why these investment instruments can be made available on the Toronto Stock Exchange and not on those in New York or Chicago for example, but it is probably only a legal issue.
The SEC has already authorized several ETFs that replicate the price of Bitcoin on US exchanges, but not collateralized by spot BTC. The only ones authorized in the US are based on futures contracts on the price of BTC.
The ETFs underlying BT3Q and ET3Q invest in long-term holdings of BTC and ETH, purchased from crypto exchanges and OTC counterparties.
The benefits of ETFs for investors
The aim of these new products is to offer Australian investors the opportunity to gain exposure to BTC and ETH without having to hold the tokens.
3iQ President and CEO Fred Pye said:
“We are delighted to launch the 3iQ CoinShares Bitcoin Feeder ETF and the 3iQ CoinShares Ether Feeder ETF on the Cboe today. Our ETFs gives retail and institutional investors regulated access to the digital asset market, providing a safer alternative to a direct investment in cryptocurrencies. 3iQ is one of the oldest and largest digital asset managers in the world and we now manage over AUS$1.8 billion in crypto assets, our experience and knowledge in the space provides investors with unparalleled crypto investment solutions”.