Cosmos launches ethereum ETF in Australia

Australian digital asset manager Cosmos Asset Management has joined forces with Canada’s Purpose Investments for the launch of an ethereum exchange traded fund for Australian investors.

The new Cosmos-Purpose Ethereum Access ETF, which was listed on Cboe Australia, invests directly in the Toronto-listed Purpose Ether ETF. The Canadian ETF holds physically settled ether tokens rather than derivatives and is backed by cryptocurrency custodian Gemini.

The Toronto-listed vehicle has amassed over A$570mn ($408mn) in assets since its inception in April last year, according to Cboe Australia.

Cosmos AM chief executive Dan Annan said the new ETF “makes it easy for Australians to introduce Ethereum to their portfolio by eliminating the need for Ethereum wallets and cold storage, which are often the limiting factor for those interested in investing in cryptocurrencies”.

Cboe Australia boss Vic Jokovic said: “As investors continue to seek cryptocurrency exposure, it’s important the market provides them with choice and access.” He added that the new ETF provided Australian investors “with unique access to the world’s first physically settled ether ETF.”

This article was previously published by Ignites Asia, a title owned by the FT Group.

The launch comes shortly after Cosmos AM listed its Cosmos-Purpose Bitcoin Access ETF (CBTC) on Cboe Australia together with Purpose Investments on May 12. Last year, Cosmos AM also started trading its Cosmos Global Digital Miners Access ETF on the exchange.

ETF Securities and Switzerland’s 21Shares launched the ETFS 21Shares Ethereum ETF (EETH) and the ETFS 21Shares Bitcoin ETF (EBTC) on May 12, the same day that Cosmos AM listed its bitcoin vehicle.

Australia’s first three crypto ETFs began trading following a two-week delay after an undisclosed third-party broker reportedly blocked their listing at the last minute.

The launches have coincided with a major crash in cryptocurrencies.

*Ignites Asia is a news service published by FT Specialist for professionals working in the asset management industry. It covers everything from new product launches to regulations and industry trends. Trials and subscriptions are available at ignitesasia.com.