The launch of Australia’s first crypto-focused ETFs this week was met with great fervor and enthusiasm. Both ETFs managed to have record initial trade figures. In fact, the latest Beta Shares ‘CRYP’ ETF listed on ASX raised over $ 42 million in day one. It surpassed all previous releases on the exchange.
Despite plans to launch a range of products focused on cryptocurrencies, BetaShares CEO Alex Vynokur expressed caution towards the cryptocurrency industry.
Weather Talking to Business Insider Australia, the executive noted that success with crypto-focused ETFs hinted at “considerable” demand for digital asset investment products. However, he also mentioned that the asset class was risky to meddle. Vynokur said:
“We would also like to emphasize the importance of diversification and, as such, investments in digital assets should be viewed as part of a broadly diversified portfolio.”
Ergo, this is why the first BetaShares ETF focuses on companies directly related to the crypto industry rather than the currencies themselves. However, the company hopes to launch the first Australian ad. Bitcoin and Ethereum ETF one time regulatory green light It is acquired.
Even if it was commendable, CRYP’s success was overshadowed by Cosmos Asset Management’s DIGA ETF, which became the best performing Australian ETF of all time, across all exchanges.
However, Cosmos CEO Dan Annan also voiced similar concerns to Business Insider, urging investors to approach the asset class cautiously now that it has largely plunged into the mainstream. He said,
“You know, it definitely provides a huge performing asset class, but it comes with risks. Therefore, every investor should really analyze where this asset is in their portfolio. It comes with high volatility, so from a portfolio building perspective, it’s important that you consider your tolerance for risk capital. “
The CEO further added that for people who are willing to take the risk, the returns on investing in digital assets have proven to be relatively high. Furthermore, apart from price fluctuations, investors could also fall victim to investing in ETFs whose underlying assets are not completely crypto-centric, Annan noted. Also he said,
“And I think there are some products on the market right now that masquerade as digital miners, but when you lift the hood, they are controlling companies like Tesla and PayPal. It is extremely important that [moving forward] Investors raise the hood on the exposures they seek to own. “
This is a machine translation of our English version.
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