The new BetaShares ETF will track the crypto indexes of firms such as Coinbase, Riot blockchain and MicroStrategy, the fund will trade on ASX and aims to provide a level of crypto exposure to institutional investors.
BetaShares is on the verge of launching a new crypto-focused exchange-traded fund (ETF), six months after filing an application with the Australian Securities Exchange (ASX).
The official name of the Australian ETF manager’s new product, according to an Oct. 13 statement, is BetaShares Crypto Innovators ETF. It would trade on the ASX under the ticker name CRYP after receiving all necessary regulatory approvals.
BetaShares’ fund, like comparable Bitcoin (BTC) or crypto-focused ETFs, intends to provide institutional investors wishing to invest in cryptocurrencies indirectly with a level of crypto exposure.
The new fund will track the Bitwise Crypto Industry Innovators Index, which was introduced in May as a method to gain exposure to the top publicly traded blockchain and cryptocurrency companies.
Crypto exchange Coinbase, Bitcoin mining startup Riot Blockchain and Michael Saylor’s MicroStrategy are among the current index participants, according to the statement.
The majority of the index (85%) is made up of companies that make at least 75% of their revenue by supplying crypto markets directly, such as crypto exchanges, mining companies, and service providers.
“The crypto economy is highly dynamic and constantly growing, and it is built on fascinating and disruptive technology,” said Alex Vynokur, CEO of BetaShares. He went on to say that the new fund would give investors access to the crypto market through a familiar, liquid ETF structure.
“Mark Twain is famous for saying that ‘during the gold rush it’s a good time to be in the pick and shovel business.’ CRYP will take a ‘pick and shovel’ approach to the crypto sector, investing in the companies that are driving the crypto economy.”
BetaShares filed for listing on the ASX in March. Initially, the business kept the nature of its funds a secret. Vynokur went on to say that there is a lot of demand for crypto-focused ETFs and that for the majority of investors, an ETF with a regulated structure is the best option.
