• 21Shares will feature two spot crypto ETFs
  • 21Shares has roughly $2.5 billion in assets under management
  • Its products are listed on 10 regulated European exchanges

The first Australian exchange-traded funds (ETFs) that will invest in Bitcoin and Ethereum will go live on April 27.

21Shares, a Swiss-based issuer of crypto Exchange Traded Products (ETPs), and leading ETF provider ETF Securities have jointly launched two funds that offer "simple, cost-effective and direct access to cryptocurrency investments," the company said in a statement Tuesday.

Both funds will be listed on Australia's CBOE Exchange.

"ETFS 21Shares Bitcoin ETF is the first Australian ETF to invest directly in bitcoin, and ETFS 21Shares Ethereum ETF is the first to invest directly in ether. Both funds will go live on April 27," the statement read.

21Shares has over $2.5billion in Assets under Management (AUM) and has a valuation of over $700 million.

While ETFS 21Shares Bitcoin ETF (Code: EBTC) will track the price of Bitcoin in Australian dollars, ETFS 21Shares Ethereum ETF (Code: EETH) will track the Australian dollar price of Ether.

Graham Tuckwell, Executive Chairman of ETF Securities Australia, said EBTC and EETH give investors a way to trade cryptocurrency in a tightly regulated environment, without the need to establish and maintain their own bitcoin or Ethereum wallets, or manage the risks.

"Once we decided to build a range of crypto ETFs for the Australian market, there was only one partner we wanted to work with, and that's 21Shares. Its pioneering approach to secure investment in cryptocurrency has been emulated by other fund managers around the world," Tuckwell said in the statement.

Hany Rashwan, CEO and co-founder of 21Shares, said: "We're so incredibly excited to be able to offer the first direct exposure Bitcoin and Ethereum ETF in Australia. Australian investors clearly want and deserve an affordable, easy, and professional way to access the growing crypto asset class and we're delighted to continue building accessible bridges into the crypto world.

"We're starting with Bitcoin and Ethereum but have even more exciting plans for Australian investors".

While investing in crypto assets through ETFs is a known territory across Europe, Canada and elsewhere, this is for the first time they are getting launched in Australia, whose regulators have previously viewed digital assets as volatile and unfit for the country’s financial markets.

On the other hand, US Securities and Exchange Commission (SEC) continues to tighten its stance on approving ETFs. Last month, SEC delayed decisions on two spot bitcoin ETF proposals, namely WisdomTree and One River.

A representations of cryptocurrency Bitcoin is seen in front of a stock graph and U.S. dollar in this illustration taken, January 24, 2022.
A representations of cryptocurrency Bitcoin is seen in front of a stock graph and U.S. dollar in this illustration taken, January 24, 2022. Reuters / DADO RUVIC