Mensholong LepchaCosmos Asset Management on Thursday launched an exchange traded fund (ETF) tracking the performance of listed cryptocurrency miners and blockchain infrastructure providers from around the globe.
This is the third cryptocurrency-linked ETF to be launched in the space of two weeks, with ProShares Bitcoin Strategy ETF hitting the market on October 18.
The Cosmos Global Digital Miners Access ETF is listed on Australia’s Chi-X exchange and will trade under the ticker DIGA. The index will track the Global Digital Miners Index.
Tracks Global Digital Miners index
The Global Digital Miners index is custom designed by Cosmos Asset Management and is maintained by S&P Dow Jones Indices, said the prospectus.
The Global Digital Miners index will include only listed companies that generate at least 80% of their revenue from digital asset mining and infrastructure, Cosmos Asset Management said.
Companies with A market capitalisation of at least $100m and a median daily trading volume of at least $1m will be eligible for inclusion in the index and a 15% weightage cap will apply for each company for diversification purposes.
Seven Nasdaq listed firms included
Seven Nasdaq-listed companies namely Marathon Digital, Hut 8 Mining, Riot Blockchain, Hive Blockchain Technologies, Canaan, Cipher Mining and Bit Digital are among the top 10 holdings on the underlying index.
Toronto-listed Galaxy Digital Holdings, Canada-based Bitfarms and London-headquartered Argo Blockchain make up the top 10 constituents on the Global Digital Miners index, as of 26 October.
According to Cosmos Asset Management, its Global Digital Miners index has returned about 683.7% over the year, as of 26 October, compared to Bitcoin’s return of about 330% in the same period.
Bitcoin ETFs underwater
Despite the huge publicity surrounding the ProShares ETF and its peer Valkyrie Bitcoin Strategy ETF, they both ended their first week's trading below their issue price.
