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State Street bags K2 Asset Management mandate

K2 Asset Management has announced that State Street Australia will be the fund administrator and custodian for the Cosmos Purpose Bitcoin Access ETF (CBTC).

State Street will administer and provide custodial services in Australia to this fund that provides domestic investors with exposure to a cryptocurrency managed investment scheme listed on Cboe. In turn, the scheme invests in a listed offshore fund whose holdings include Bitcoin.

Executive director of K2 George Boubouras said: "K2 Asset Management is very pleased to work with State Street and other key stakeholders to deliver a sustainable solution in the increasingly important digital and crypto segment for investors."

Likewise, State Street digital APAC product lead Irfan Ahmad said: "Demand for cryptocurrencies is growing among Australian investors and ETFs are a cost-effective and efficient vehicle to gain exposure to this emerging asset class."

Though Ahmad did concede that the nature of cryptocurrencies did add new complexity to the traditional ETF model.

"ETF issuers need a trusted partner that has extensive experience servicing ETFs across multiple geographies and understands the intricacies of administering digital assets," he said.

In this case, Ahmed was pleased to have State Street partner with K2 Asset Management.

CBTC launched yesterday on Cboe and will track the total performance of the Purpose Bitcoin ETF. So far, the fund has had lacklustre trading volumes although this is likely attributable to the huge crypto market sell-off.

The total cryptocurrency market capitalisation has fallen from $US2.9 trillion to $US1.2 trillion in six months.

Read more: K2 Asset ManagementState Street AustraliaAPACCosmos Asset ManagementGeorge BoubourasIrfan Adman