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The fund will be listed on the ASX and will aim to provide institutional investors with a level of crypto exposure.
Six months after submitting an application to the Australian Securities Exchange (ASX), BetaShares is on the verge of launching a new cryptocurrency-focused exchange-traded fund (ETF).
The official name of the Australian ETF manager’s new product is BetaShares Crypto Innovators ETF, according to a Wednesday announcement. Following the necessary regulatory approvals, it would trade on the ASX under the ticker symbol CRYP.
As with the similar Bitcoin (BTC) or crypto-focused ETFs, BetaShares’ fund aims to provide a level of crypto exposure to institutional investors looking to invest in cryptocurrencies indirectly.
The new fund will track the Bitwise Crypto Industry Innovators Index, which was launched in May, to provide exposure to the top publicly traded firms in the blockchain and crypto industries.
As current index constituents, the announcement mentions cryptocurrency exchange Coinbase, Bitcoin mining company Riot Blockchain, and Michael Saylor’s MicroStrategy. The majority of the index (85%) is made up of companies that generate at least 75% of their revenue directly from crypto markets, such as crypto exchanges, mining companies, and service providers.
“The crypto economy is highly dynamic and growing rapidly and is built using exciting and disruptive technology,” said BetaShares CEO Alex Vynokur. He added that the new fund would enable exposure to the crypto sector in 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 company did not reveal the nature of its fund. Vynokur then emphasised the significant demand for crypto-focused ETFs, stating that a regulated structure of an ETF is the better structure for the majority of investors.