Graham Tuckwell,

Mirae Asset Global Investments Co., Ltd. (Mirae Asset), one of Asia’s leading independent financial companies based in Seoul, Korea, and Global X ETFs (Global X), the New York-based provider of exchange-traded funds (ETFs) and a subsidiary of Mirae Asset, has announced that they have completed the acquisition of ETF Securities, Australia’s pioneering independent ETF provider.

The acquisition provides an opportunity for Mirae Asset and Global X to add instant scale in the Australian market, and ETF Securities’ product lineup of thematic, commodities and digital assets strategies compliments Mirae Asset’s and Global X’s current offerings of innovative and intelligent ETF solutions for global investors.

Mirae Asset currently has an extensive global ETF platform ranging across the U.S., Brazil, Canada, Colombia, Europe, Hong Kong, India, Japan, Korea, and Vietnam. With the addition of ETF Securities and its A$4.7 billion in assets under management (AUM)^[1], Mirae Asset is expanding its footprint into Australia and bringing its ETF AUM to over $85 billion^[2].

“We are incredibly excited to enter the Australian market and to meaningfully expand our global ETF footprint through the acquisition of ETF Securities’ inventive business,” said Byungsung Lee, CEO of Mirae Asset Global Investments. “This acquisition underscores Mirae Asset’s continued commitment to maintaining industry-leading ETF businesses in key markets around the world and brings immediate scale to our operations in Australia.”

The partnership with Mirae Asset will bring ETF Securities Australia the resources of a large financial institution, including more than 12,000 employees located in key developed and emerging markets. In addition, with Global X’s legacy as the global leader in thematic investing, having over a decade of experience and more than 30 targeted products in the space, ETF Securities will gain access to Global X’s resources and expertise, including its world-class research and product development capabilities.

“For 20 years, ETF Securities has been a pioneer in the ETF industry. From the introduction of the world’s first physical gold ETF in 2003 to maintaining the largest precious metals ETF platform in Australia today and expanding its offering to include a growing range of thematic and digital assets products, I’m exceedingly proud of what the team has been able to accomplish,” said Graham Tuckwell, Founder and Chairman of ETF Securities. “As true innovators in the ETF industry around the world, Mirae Asset and Global X are like minded – undeniably sharing our Australian teams’ visionary mindset and commitment to client service.”

“Over the past several years, Global X has worked to develop the infrastructure to be a leading ETF issuer, not just in the US, but in key ETF markets around the world,” said Luis Berruga, CEO of Global X. “ETF Securities and Global X share an exploration mindset that has allowed both businesses to quickly adjust to the demands of a very fast industry, and we are thrilled to leverage our global capabilities to support ETF Securities’ next phase of growth. By joining forces, we are able to share resources to provide Australian investors with truly first-of-their-kind ETFs across thematic, commodities and digital assets.”

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[1] ETF Securities, as of 6/10/22
[2] Mirae Asset, as of 6/3/22

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Graham Tuckwell,

Cboe Australia (“Cboe Australia”) is pleased to introduce the ETFS 21Shares Bitcoin ETF (“EBTC”) and the ETFS 21Shares Ethereum ETF (“EETH”), the first exchange traded funds to offer Australian investors with direct, regulated exposure to the world’s largest digital tokens by market capitalisation, Bitcoin and Ethereum.

Leading provider of specialist ETF solutions ETF Securities selected Cboe Australia to launch Australia’s first cryptocurrency-backed ETFs to investors, providing local investors with simple access to the growing appeal of cryptocurrency.

EBTC and EETH, developed in conjunction with the world’s largest crypto-currency ETP product issuer, 21Shares, will offer investors a more familiar investing experience when investing in Bitcoin and Ethereum, reducing the uncertainty associated with investing in cryptocurrencies.

Cboe Australia CEO, Vic Jokovic, said: “We’re pleased to partner with ETF Securities to bring the first Crypto ETFs to market in Australia on the exchange. EBTC and EETH are breakthrough products that will pave the way for more Australians to expose their portfolios to cryptocurrency in a regulated manner.

“We are committed to providing Australians with access to best-in-class technology and innovative investment solutions, and ETF Securities’ decision to quote EBTC and EETH on Cboe Australia is a testament to that commitment.

“As a part of Cboe Global Markets, Cboe Australia will continue to leverage our parent’s global expertise and technological capabilities to enhance the Australian market.”

ETF Securities Chairman, Graham Tuckwell, said: “Today is an exciting day for our team, a culmination of months of hard work to bring these ETFs to the Australian market. EBTC and EETH are true firsts for Australia, and we are excited to be launching with Cboe Australia.

“The market capitalisation and trading volumes for these two leading cryptocurrencies are now larger than any company listed on the Australian stock exchanges, yet investors have not been able to gain access to them in a regulated manner.

“By offering this access through an ETF, investors can now gain portfolio exposure to these crypto-currencies in an institutional-type way.”

EBTC and EETH commence trading on Cboe Australia on 12 May 2022 and will be available through Cboe market participants and supporting Australian stockbrokers.

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Graham Tuckwell,

Leading ETF provider ETF Securities will launch two funds that offer simple and cost-effective access to cryptocurrency investments. ETFS 21Shares Bitcoin ETF will be the first Australian ETF to invest in bitcoin, and ETFS 21Shares Ethereum ETF will be the first to invest in ether.

ETF Securities has partnered with 21Shares, a European fund manager that has been managing bitcoin, Ethereum and other cryptocurrency exchange traded products since 2018 and currently has US$2.5 billion of assets under management.

Both funds will list on Cboe Australia (formerly Chi-X). ETFS 21Shares Bitcoin ETF (Code: EBTC) will track the price of bitcoin in Australian dollars. It is fully backed by bitcoin held in cold storage by Coinbase.

ETFS 21Shares Ethereum ETF (Code: EETH) will track the Australian dollar price of ether, which is the cryptocurrency of the Ethereum blockchain. It is fully backed by ether held in cold storage by Coinbase.

Cold storage involves storing the private keys used to access and transact in cryptocurrencies in offline servers, with no internet access and out of reach of hackers. Coinbase’s vault has become the preferred storage for many institutions and it holds one of the largest stores of cryptocurrency.

Its vault uses advanced encryption and key management, multi-signature bitcoin addresses, military grade physical security and highly secure processes to keep cryptocurrencies offline and dispersed across three continents.

Graham Tuckwell, Executive Chairman of ETF Securities Australia says EBTC and EETH give investors a way of trading 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 says.

ETF Securities Head of Distribution Kanish Chugh says bitcoin has been the best performing asset over the past 10 years and ether has been one of the top performing assets over the past five years. “They may be used as an alpha tilts or side bets in a portfolio. They can also be bought as portfolio diversifiers, as they are completely different asset and uncorrelated to shares, bonds and commodities.”

Ethereum provides both a currency (ether) and blockchain-based contracts, sometimes called “smart contracts”. These contracts have placed Ethereum at the centre of crypto innovation and made it the driving force behind non-fungible tokens (NFTs), decentralised finance and decentralised autonomous organisations.

Chugh says that for investors looking for exposure to cryptocurrencies, investment via EBTC and EETH overcomes the pitfalls of the cryptocurrency market, including low exchange quality, weak custody arrangements, vulnerability to hacking and the loss of private keys and passwords.

CEO of 21Shares Hany Rashwan says “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”.

The net asset value of EBTC and EETH units is calculated by multiplying the coin entitlement of every unit by the price of underlying cryptocurrency as measured by CryptoCompare at 3pm Central European Time, converted into Australian dollars.

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As such, Mr Tuckwell will play a more active strategic role in defining the future direction of the business, applying his decades of experience in building the international ETF businesses.

As part of this new business structure, the role of Australian CEO is no longer required and the incumbent, Kris Walesby is leaving with immediate effect.

The firm also announced the established senior management team will take on expanded responsibilities and be responsible for the daily operation of the firm, reporting directly to Mr Tuckwell.

Kanish Chugh has been appointed as Head of Distribution. He will be responsible for growing the client base by building and strengthening partnerships with institutions, financial intermediaries, retail customers and self-directed SMSF investors.

Evan Metcalf has been appointed as Head of Product. He will be responsible for the development and management of products, as well as the management of capital markets relationships and the oversight of investment research.

Cliff Man has been appointed as Head of Portfolio Management. He will be responsible for portfolio management, as well as for business intelligence and the oversight of the information technology functions of the company.

Graham Tuckwell, Executive Chairman ETF Securities Australia said: “I am pleased and excited to be back in Australia and look forward to a more active and strategic involvement in defining the future direction of this strong firm.

“Today, ETF Securities has surpassed $3 billion in funds under management, doubling assets in just under two years. Kris has played an important role in leading the Australian business for the last five years and we wish him every success in his future endeavours.

“With the Australian ETF industry touching an all-time high of $70 billion in funds under management we believe that there are great opportunities in Australia for the business to accelerate and capitalise on its recent growth. We are committed to the Australian ETF market, excited for its potential and the role we have in making this a reality,” added Mr Tuckwell.

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