BetaShares has announced the launch of a new ETF that will provide exposure to a range of global companies it says are at the forefront of the crypto economy.
Expected to begin trading on the ASX in the coming weeks under the ticker code ‘CRYP’, the BetaShares Crypto Innovators ETF will aim to track the Bitwise Crypto Industry Innovators Index.
“The crypto economy is highly dynamic and growing rapidly, and is built using exciting and disruptive technology,” said BetaShares CEO Alex Vynokur.
“CRYP will be an innovative way for investors to get exposure to the crypto sector in a familiar, liquid and cost-effective ETF structure.”
According to BetaShares, the ETF’s index is “designed to capture the full breadth of the crypto ecosystem” with exposure to pure-play crypto companies, companies with balance sheets primarily held in crypto assets and diversified large cap companies with at least one crypto-focused business line.
Cryptocurrency exchange platform Coinbase, bitcoin mining company Riot Blockchain and business intelligence firm MicroStrategy are among the current constituents of the index that was developed by Bitwise, described as being one of the world’s largest crypto asset managers.
“BetaShares expects significant demand for CRYP both from investors who are excited about the prospects for the crypto sector but who are not comfortable holding actual cryptocurrency, and from investors with direct cryptocurrency exposure who are seeking diversification within the broader crypto ecosystem,” the ETF manager said.
“Given the characteristics of the crypto sector, this fund may be considered by investors who have a relatively high tolerance for risk as part of a broader equities allocation.”
Australian Securities and Investment Commission chair Joseph Longo told the House of Representatives’ standing committee on economics last month that the regulator was concerned about the lack of regulation and legislation surrounding crypto-based assets.
In June, the regulator also acknowledged the demand for domestic crypto ETPs and said there was a “real risk of harm to consumers and markets if these products are not developed and operated properly”.