24 May 2022

Slow start down under: Australian Bitcoin ETFs struggle to gain traction

Australian bitcoin ETFs have seen a slow start, amassing an AUM of 250 BTC two weeks after launching.
*CBTC’s exposure is in the Canadian Purpose ETF, not bitcoin directly Source: ETF Securities, Cosmos Asset Management, Tradingview (Binance)
Two weeks after their launch, Australian bitcoin ETFs have seen their AUM reach slightly above AUD$ 10m after a slow start.
Two bitcoin ETFs have been launched in Australia:
  1. ETFS 21Shares Bitcoin ETF (EBTC). This ETF offers exposure to physical bitcoin.
  2. Cosmos-Purpose Bitcoin Access ETF. This ETF is structured as a funds-of-funds ETF with exposure to bitcoin through the Canadian Purpose ETF.
EBTC has seen the strongest start of the two since launch, with its bitcoin exposure sitting at 212 BTC two weeks after launch. Meanwhile, CBTC has a bitcoin exposure through its Purpose holdings equaling approximately 37 BTC.The vast difference in the AUM between the ETFs is unsurprising, given the more direct exposure enabled through EBTC. Compared to the global bitcoin ETF market size, Australian ETFs are small, accounting for 0.13% of the market. The slow start may be explained by unfortunate timing in the midst of the collapse of LUNA and the associated contagion effect. VanEck, BetaShares, and Coinshares are also in the process of launching ETFs in Australia. As per usual, we’ll make sure to monitor these flows in companionship with flows in other regions in our monthly ETF series, “In tune with the Flow”.
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