Sydney-based crypto specialist Cosmos Asset Management has launched a conentrated thematic equity ETF in Australia providing exposure to companies that are focused on digital asset mining and blockchain infrastructure. The ETF provides exposure to companies worldwide that are focused on digital asset mining and blockchain infrastructure.
The Cosmos Global Digital Miners Access ETF (DIGA AU) has been listed on Chi-X Australia and comes with an expense ratio of 0.90%.
It is linked to the Global Digital Miners Access Index, an index developed by Cosmos and independently calculated and maintained by S&P Dow Jones Indices.
The index selects its constituents from a universe of developed and emerging market stocks with market capitalizations greater than $100 million and average daily trading volumes above $1m.
The methodology screens for companies that derive at least 80% of their revenue from activities linked to blockchain technology, digital asset mining, multi-type business and personal systems, and digital asset mining infrastructure. An index committee, comprising board members and staff from Cosmos, is responsible for final security selection.
Constituents are weighted by float-adjusted market capitalization subject to a cap of 15%. The index is reviewed and rebalanced on a monthly basis.
As of 26 October, the index contained 15 constituents with the vast majority (84.7%) of the total weight allocated to information technology stocks and the remainder in the financials sector. Stocks from the US accounted for half (49.9%) of the index exposure with Canada (29.4%), China (13.8%), and the UK (5.0%) making up the next-largest country weights.
Notable positions included Riot Blockchain (15.2%), Marathon Digital (15.0%), Galaxy Digital (14.4%), Hut 8 Mining (13.4%), Hive Blockchain Technologies (9.5%), Canaan (8.5%), Bitfarms (7.1%), and Argo Blockchain (5.7%).
Cosmos Asset Management is a division of Mawson Infrastructure Group, a Nasdaq-listed digital asset infrastructure and mining company with operations in the US and Australia.
James Manning, CEO and Founder of Mawson, said: “The Cosmos Global Digital Miners Access ETF is designed to provide access to global leaders listed on national exchanges with a focus on cryptocurrency asset mining and infrastructure.”
He added: “Mawson is proud to provide Australian investors with easy access to this space given the industry’s growing global appeal, without them having to hold direct equities in multiple jurisdictions or try to hold cryptocurrencies directly. We believe this is a significant development and milestone for the Australian funds management industry, providing greater opportunities, flexibility, and access to this growing industry.”
Investors seeking a more diversified play on the broader blockchain space might wish to explore the recently launched ETFS Fintech & Blockchain ETF (FTEC AU) from ETF Securities. This fund provides exposure to blockchain companies within the wider-ranging theme of fintech innovation. It tracks the Indxx Developed Markets Fintech & DeFi Index, targeting companies that are disrupting the global financial industry through technology-enhanced services. The fund has an expense ratio of 0.69%.