“These amendments to the operating rules represent another milestone on the journey to offer ETFs that provide exposure to the spot prices of bitcoin and ethereum,” said BetaShares chief executive Alex Vynokur. ”These rules will provide for the fair, transparent and orderly trading of cryptocurrency ETFs on Australia’s largest exchange.”
VanEck Asia-Pacific managing director Arian Neiron added: “The changes are well-considered and robust. They … are a structural step towards enabling access to the digital asset class.”
The ASX hopefuls, both of which applied late last year to list crypto ETFs on the exchange, watched on with frustration as rivals ETF Securities and Cosmos Asset Management seemingly surged ahead and announced they would list the nation’s first products in this new category on the Cboe exchange on April 27.
But an unexplained problem prevented the funds from launching on the due date, with Cboe informing the market that “standard checks” were yet to be completed. At close of market on Friday, they had not begun trading.
Cboe has declined multiple requests to comment on the 10-day delay – a period in which new challenger, Toronto-based 3iQ Digital Asset Management, has entered the race, lodging a prospectus with the corporate regulator to list two crypto ETFs in Australia.
A Cboe spokesman was unable to provide an estimate of when the funds might commence trading. The Australian Financial Review revealed the hold-up was caused by undisclosed “prime brokers” who needed more time to support the trade and get their commercial and regulatory affairs in order.
‘Marathon, not a sprint’
The delay has opened up the possibility that the firms opting to list ETFs on the ASX could surpass their Cboe rivals to become first movers in this market, despite having ruled themselves out of contention just a week ago.
ASX, VanEck and BetaShares all declined to nominate a date when the crypto ETFs might begin to trade on the ASX, but sources with knowledge of the listing process estimated the launches were six to eight weeks away.
Market sources said it was “unlikely but possible” the Cboe delays would last that long, with issuers hopeful the pending funds may start to trade on Cboe next week.
Mr Vynokur said the race should be seen by investors and wealth advisers as a “marathon, not a sprint”, given a number of stakeholders needed to become comfortable with the new asset class. “BetaShares is continuing to work closely with relevant regulators and market infrastructure partners to deliver cost-effective, true to label and robust ETFs,” he said.
Earlier this week, Liberal senator Andrew Bragg intervened in the race, writing to Australian Securities and Investments Commission chairman Joseph Longo and asking him to prioritise applications from Australian-based employers rather than foreign competitors.
The intervention followed the entry of the Canadian 3iQ and lobbying by Brisbane-based Monochrome Asset Management.
