Spotlight on Dan Annan, Chief Executive Officer, Cosmos Asset Management
Global Thought Leader Spotlight
Dan Annan, Chief Executive Officer, Cosmos Asset Management
“In my role as Chief Executive Officer of Cosmos Asset Management I am responsible for leading the business operations with a view from the intersection between traditional finance and the evolution of the digital economy—designing and providing investors access to the cryptocurrency asset class through exchange traded funds (ETFs).
“Our goal is to simplify the investment experience by providing access to digital assets with a secure and hassle-free experience. To date, we have launched 3 innovative funds focused on providing access to the most important assets in the crypto ecosystem: Bitcoin, through the Cosmos-Purpose Bitcoin Access ETF (ticker: CBTC), Ether through the Cosmos-Purpose Ether Access ETF (ticker: CPET), and the picks and shovels—a diversified index of listed companies focused on cryptocurrency mining and infrastructure (ticker: DIGA).
“On our mission to deliver best-in-class of the digital economy to investors, Cosmos Asset Management has entered a JV with Purpose Investments, a $15bn Fund Manager out of Canada, who pioneered and launched the first spot Bitcoin and Ethereum ETFs in the world. This relationship offers Cosmos’ customers access to best-in-class Institutional grade products.
“Since the initial release of Bitcoin in 2009 by the pseudonymous—Satoshi Nakamoto, the inventor of Bitcoin, cryptocurrencies have slowly been buzzing around the world. Heralded by those in the weeds as the future of global finance, there are numerous debates surrounding cryptocurrencies and questions that have yet to be answered. Most people have heard of cryptocurrencies, but do not utterly understand how they work and the potential impact they have on our global emerging digital economy.
“On the surface, cryptocurrencies can make a tempting investment option, and we have seen some speculative investors chasing returns—some have benefited, making a fortune and others have suffered severe losses, placing fear, doubt, and confusion. With any emerging asset class, it is crucial that investors understand the fundamentals, and the risks vs. rewards that the asset offers within their investment portfolios.
“So, what is a cryptocurrency?
“In simple terms, it is a digital currency that is designed to emulate real-world money, decentralising the “middlemen / organisations” whom, for years, were needed to support custody and ledger of transactions; however, the innovation of the blockchain technology now minimises this need for “the middleman”. The “blue chips” Bitcoin and Ethereum which maintain over 60% of the cryptocurrency market capitalisation (Bitcoin 40%, Ethereum 20%), stand to lead the future of the digital economy with Bitcoin being used as payments and store of value and Ethereum supporting traditional businesses’ logistic payments due to its smart contract nature.
“The current economic environment coupled with a cascading series of failures and bankruptcies in the digital currency asset class brings us to the fourth “crypto winter” since its emergence in 2009. But this short-term volatility should not discount the long-term outlook created by the generational leap in technology.
“Though Bitcoin has dropped 65% from its peak in 2021, it is still up 181% from pre-pandemic levels and up 617% in the past 5 years. This makes it the best-performing asset over that timeframe, despite the volatility.
“When we assess the fundamentals of the digital currency asset class, there is plenty to be excited about:
There continues to be an increase in developer activity—in not only Ethereum but in other blockchains as well-showing that engagement in the crypto community remains high and new innovations continue to be developed.
The stablecoin crash and the bankruptcies of Celsius, 3 Arrow Capital, and Voyager, has shun a spotlight on companies with unsustainable business models, amplifying conversations around establishing regulatory clarity for the future of the asset class.
Key infrastructure is still being built out. We can see this in the emergence of a more comprehensive decentralised financial system and the continued development of Web 3.0 capabilities that are democratising incentives for the creator economy.
“So, while the current macro-investing landscape has been tough, it is important to remember that this isn’t the first crypto winter—it’s not even the worst, as tech breakthroughs, blockchain developments, and regulatory clarity continue to improve fundamentals.
“What we have seen over the last couple of years in this asset class is strong support from prominent institutional investors and regulatory bodies, further supporting the long-term case and viability of the cryptocurrency-blockchain technology.
“The Distributed Ledger Technology (DLT), which provides a secure platform to trade assets and record them on multiple venues all at once has the potential to revolutionise our current financial capital markets ecosystem. DLT has the potential to eliminate intermediaries and reduce counterparty risk—reducing transaction fees and operating costs within the current capital markets ecosystem.
“Today, we have traditional merchants such as iTunes, PayPal, BMW, Microsoft, Burger King, Subway, Starbucks, McDonalds, among others, accepting cryptocurrency as a form of payments in parts of the world. We are also seeing institutional investors—Fidelity, BlackRock, JP Morgan and many more either investing in the platform or offering access for their clients.
“We are in the “primitive” stages of the cryptocurrency evolution, like the early days of the Internet and the technology sector. Astute investors stand to benefit by gaining insights into the fundamentals of the asset and its integration to our emerging digital economy, positioning portfolios with measured risk/reward allocations for the long-term growth of the asset class.”
Dan will be presenting on the latest developments in the world of digital assets and their fit for institutional portfolios at Global Investment Institute’s upcoming Fixed Income & Defensive Assets Investment Forum, taking place on Thursday, 8 September 2022 at the Westin, Melbourne CBD, Victoria.
To register your interest in attending, click here or for more information email zlatan.kapetanovic@globalii.com.au.
Dan Annan, Chief Executive Officer, Cosmos Asset Management
Dan is the chief executive officer of Cosmos Asset Management (CAM) and is responsible for leading the business operations and strategic direction. He has extensive experience in the local and global funds management industry, with over 15 years dedicated to Exchange Traded Funds (ETFs).
Before CAM, Dan was head of BetaShares Institutional ETF Business for three years. Prior to BetaShares, Dan held various roles within the iShares ETF business for BlackRock in the US and Australia. His final US post focused on capital markets, where he worked with global banks to incorporate equity and fixed income ETFs into their business models to support trading and liquidity of the ETF ecosystem.
Dan holds a Bachelor of Economics from St. Lawrence University, New York.
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Cosmos Asset Management Disclaimer
This communication has been prepared by Cosmos Asset Management Pty Ltd (ABN 34 639 356 068; CAR No. 1281643) and it is the investment manager of the Cosmos Global Digital Miners Access ETF, ARSN 652 817 840 (DIGA) and the Cosmos-Purpose Bitcoin ETF, ARSN 640 781 693 (CBTC) and the Cosmos-Purpose Ethereum Access ETF, ARSN 657 859 642 (CPET) (collectively, the “Funds”).
The responsible entity and issuer of the DIGA is One Managed Investment Funds Limited (ABN 47 117 400 987; AFSL 297042) (OMIFL). The responsible entity and issuer of the CBTC and CPET is K2 Asset Management Limited (ABN 95 085 445 094) (AFS Licence No 244393) (K2), a wholly owned subsidiary of K2 Asset Management Holdings Limited.
The information provided is general in nature and has been prepared without taking into account your objectives, financial situation or needs. All investments in financial products involve risks. Please read PDS and TMD for each of these financial products before investing - available at https://cosmosam.com.au/diga, https://cosmosam.com.au/cbtc and https://cosmosam.com.au/cpet.