Investors can get exposure to the crypto market right now, of course, through the Betashares Crypto Innovators ETF (exchange-traded fund).
I don't think speculating in currency is a bad thing, we have that with gold, we have that with oil futures, we have a range of those asset classes.
ASX's Max Cunningham
Cunningham hints that ETFs are a big focus. "We are finalizing what we think will be the underlying aspect of Bitcoin and other types of crypto assets in the ETF space."
Launched in November of last year, Betashares Crypto Innovators ETF provides exposure to global listed companies in the crypto economy.
This includes cryptocurrency brokerage Coinbase, Bitcoin miners, and other companies that help build cryptocurrency infrastructure โ the so-called pick and shovel providers for the cryptocurrency gold rush.
"It's designed to capture publicly traded companies around the world that build the infrastructure that allows the crypto economy to work," says Matt Hogan of Bitwise Asset Management. Hogan helped design the index fund.
Charging
The picks and shovels of the Bitcoin mining sector, the equivalent of investing in mining and mining equipment providers in the traditional economy, is a theme that ASX embraces as it seeks crypto exposure for investors.
โThere are a variety of people in all those pick and shovel businesses that we are engaged with. I could add, good quality operators, with proven business models with revenue and strong management teams,โ says Cunningham.
But the debut of Block/Afterpay later this month will give investors immediate access to a group with a significant crypto business โ it made $1.8 billion in revenue from Bitcoin trading in its most recent quarterly result.
Block owns 8,000 Bitcoin and is developing a Bitcoin storage wallet, an open, decentralized platform for trading Bitcoin.
The question is, which companies will follow suit?
The ASX does not name any companies it is in talks with, but there are contenders that have completed recent funding rounds with expectations of an initial public offering this year.
Kieran Warwick, 32, joined the ranks of the nation's billionaires thanks to Illuvium.Credit:Louis Douvis
This includes Tasmania-based Firmus Grid. He is backed by Sino Gold founder Nick Curtis, who was also an instrumentalist in the rare earth group, Lynas. The company markets itself as a provider of renewable energy-based cloud services and Bitcoin miner.
And while the ASX is finally embracing crypto investing, Illuvium co-founder Kieran Warwick's recent comments in a podcast with Jarden Group analyst Elise Kennedy highlight the challenges as the market operator tries to determine what risks from the investors are willing to accept.
Like Animoca, Illuvium is focused on giving gamers true digital ownership rights for the first time. But first you need the game. "We're valued at something like $8 billion right now and our game isn't out yet," Warwick told the podcast.
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