Canada’s 3iQ Digital Asset Management (3iQ), has today launched its two cryptocurrency ETFs in Australia, offering the lowest fee structure on the local crypto ETF market.

This brings the total amount of crypto ETFs available to Australian investors to six, with the latest offerings competing with Bitcoin (BTC) and Ethereum (ETH) backed funds from 21Shares and Cosmos Asset Management – all four of which launched in May.

3iQ’s new spot (“physically” backed as opposed to futures based) exchange-traded funds are Bitcoin and Ethereum focused respectively.

The 3iQ CoinShares Bitcoin Feeder ETF and the 3iQ CoinShares Ether Feeder ETF both feed from the firm’s Canadian ETFs listed on the Toronto Stock Exchange – the 3iQ CoinShares Bitcoin ETF, and the 3iQ CoinShares Ether ETF.

And in case you’re wondering, the underlying assets of the Canadian ETFs are holdings of BTC and ETH held in cold storage by the New York-headquartered Gemini crypto exchange – hence the “spot” status.

3iQ’s chairman and CEO Fred Pye, who recently spoke with Stockhead about the firm’s foray into the Aussie market and crypto more broadly, commented:

“Our ETFs gives retail and institutional investors regulated access to the digital asset market, providing a safer alternative to a direct investment in cryptocurrencies.

“3iQ is one of the oldest and largest digital asset managers in the world and we now manage over AUD$1.8 billion in crypto assets, our experience and knowledge in the space provides investors with unparalleled crypto investment solutions.”


Lowest fee structure on the market

3iQ is listing both ETFs with the lowest fee structure available in Australia – a total management expense ratio of 1.20%. That’s 0.05% lower than the competing funds. Additionally, the Canadian firm is offering a three-month management fee waiver.

The firm is also pitching its deep experience and expertise in digital asset investments as an advantage. 3iQ was founded in 2012 and is Canada’s first, and largest, investment fund manager to manage a public Bitcoin and Ethereum investment fund.

“We’re not just the regular asset manager trying to get the next hottest thing and jump into crypto… We’re bringing in a good eight to 10 years of solid experience with this,” Pye told Stockhead last month.


Launching in the bear market – good or bad?

With bearish market conditions fuelled by macro instability and inflation/global recession concerns, it’s an interesting time for such investment products to launch.

The 21Shares and Cosmos funds have kicked off with pretty sluggish volume so far, according to various reports and Cboe Australia data, so it can probably be assumed there’s currently a fair amount of investor caution dictating crypto ETF performances right now. That could all change quickly, however.

As Pye commented last month, the market’s current conditions don’t change the wider positive narrative the firm has for the digital assets industry.  In fact, he believes that it’s no bad thing Bitcoin is currently “in a bit of a holding pattern”.

“The funds will be established in your market by the time we have the next potential run up. I think the timing is excellent for us,” Pye told Stockhead in May.


Note: while 3iQ is a Stockhead advertiser, it did not sponsor this particular article.