Cosmos Asset Management, one of Australia’s leading hedge fund managers, has joined the crypto world by launching an exchange-traded fund (ETF) tracking the prices of crypto mining and infrastructure companies.
The Cosmos Global Digital Miners Access ETF (DIGA) will not track the price of Bitcoin or any other altcoin. It is listed on the ASIC regulated Chi-X exchange in Australia.
The ETF looks to invest in 30 stocks with 80% of its revenue coming from digital currencies. This would allow investors to gain access to digital currencies without having to directly buy them. It means one could still get exposure to the expanding crypto world without owning any tokens.
Some of the fund’s biggest holdings are companies in digital asset mining and infrastructure. Some of these include:Hive Blockchain technologies, Riot blockchain, Hurt 8 Mining Corp and Marathon Digital.
Cosmos CEO Dan Annan speaking about the need for the launch of the DIGA said, “By offering a product on an Australian regulated exchange such as Chi-X, it means investors do not have to directly hold cryptocurrencies and, importantly, provides Australians with the ability to access the potential upside of the next wave of financial market innovation.”
The Chi-X Australia CEO Vic Jokovic also voiced his support to the expanding crypto world and how DIGA is one of the projects that will help develop it more. He said, “We are delighted to welcome the Cosmos Global Digital Miners Access ETF to Chi-X. Investor demand for access to advanced products and technologies, including cryptocurrencies, is constantly increasing and we expect this trend to continue as more products like DIGA become available.”
The path to a Bitcoin ETF in Australia
Most Australians have been hoping for a Bitcoin ETF, and the launch of DIGA seems to show better prospects for the same. The successful launch of the first crypto ETF in the US is another indication that the Australian crypto market and other major economies are also ready to embrace Bitcoin ETFs.
So far, the Australian Securities and Investment Commission (ASIC) has already reportedly given the green light for the Bitcoin exchange-traded funds. The Australian regulator is okaying the launch of Bitcoin ETFs following sustained talks between them and other crypto industry players like exchanges and various experts in the blockchain industry.
While ASIC recognises the need for Bitcoin ETFs in the Australian market, they also stress the need for proper due diligence. In a statement following the approval, the regulator said, “We recognise the interest in, and demand for, ETPs and other investment products that hold crypto-assets in Australia. However, we are also aware of the real risk of harm to consumers and markets if these products are not developed and operated properly.”
The regulator, therefore, has given various conditions before the launch of a Bitcoin ETF. These include; appointing a custodial expert to guarantee safe and secure custody, having a minimum of $10 million AUD in net tangible assets, and ensuring proper price disclosure obligations.
Following the launch of DIGA and the imminent launch of Bitcoin ETFs, the Australian crypto-economy is set to become a leader in the space.
