Australia Records Uneventful Crypto-Focused ETF Launch Amid Worsening Market Sell-Off

Updated:

The launch of the first set of cryptocurrency-based exchange-traded funds (ETFs) in Australia met a weak reception amid an industry-wide sell-off-fueled crash, signaling the possible start of another extended crypto winter.

Australia saw its first ETFs launch on the Cboe Global Markets Australian exchange earlier today after a delayed launch. The funds launched on the exchange include 21Shares Bitcoin ETF, Ethereum ETF, and Cosmos Purpose Bitcoin Access ETF.

The 21Shares product is a spot ETF that will directly track the prices of Bitcoin and Ethereum, while the Cosmos product will track the Canadian Purpose Bitcoin ETF, which currently boasts about $1.1 billion in assets.

Australia and Canada Welcome Spot ETFs with Open Arms as the US Maintain Restrictive Stance

As Australia and Canada show eager readiness to approve spot crypto ETFs within their territories, it is a different story in the United States, where the doors remain firmly shut against spot ETFs.

The funds, which previously garnered intense anticipation before its postponement in late April, were met with a gloomy reception as the crypto market recorded some of its worst trading sessions on record.

The Cosmos Purpose fund and 21Shares’ Bitcoin ETF recorded a weak trading volume on their debut at AU$ 250,000 in the first hours of trading. The Ethereum funds suffered a similar fate with volumes of around AU$ 150,000, according to a report from the Australian Financial Review (AFR).

By the first half of the day, the market valuation of the three products hovered between AU$ 400,000 to AU$470,000.

While many analysts described the first half of the ETFs’ debut as “somewhat muted” and a “fizzer,” Cosmos Asset Management chief executive Dan Annan remained optimistic, noting:

“We have seen good reception from the market for day one trading to this point. We’re happy with how the product is trading regarding spreads.

However, those investors with long-term views on exposure to Bitcoin and cryptocurrency will understand that this is a good opportunity for an entry point, and therefore, we hope to see an increase in volumes in the days ahead.”

 

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.