Australian crypto ETFs off to a rocky start
There were meant to be three cryptocurrency-based ETFs launch in Australia today. Unfortunately for the sector, all three missed their mark, which won’t be a great start in the eyes of investors.
Those ETFs were a Bitcoin Spot EFT by Cosmos Asset Management, and both a Bitcoin ETF and Ether ETF by 21Shares. As reported by CoinTelegraph, it may have been a downstream service provider, such as a prime broker or institutional player behind the delay.
The issuers of the EFTs were quick to assure prospective investors that the underlying ETFs were sound and in progress. Cboe Australia, the exchange that will be listing the ETFs, released a statement yesterday to the effect that “standard checks prior to the commencement of trading are still being completed.”
However, Australia is not the only place where 21Shares has struggled to get crypto ETFs off the ground. In April the company had a Bitcoin ETF rejected by the US Securities and Exchange Commission on the grounds that it failed to meet requirements for listing a financial product.
ETFs are widely seen by the industry as a legitimising step for cryptocurrency. Furthermore, it is expected that ETFs, which will give investors the opportunity to gain a cryptocurrency position without having to purchase the assets themselves, will help to open the crypto market to a broader pool of investors.
While these delays are unlikely to deter the bulk of investor interest, it highlights the reality that cryptocurrenies are still a maturing asset class, and there will continue to be teething issues as financial products are built around them.