Bitcoin and Ether ETFs in Australia get delisted amid crypto winter
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(Kitco News) – The launch of crypto-related exchange-traded funds (ETFs) has been heralded by many in the industry as proof that the sector is headed for mass adoption, but for some, the onset of crypto winter has made it impossible to survive.
According to a Bloomberg report, a handful of ETFs launched in the Australian market are now headed for delisting following the poor performance of the asset class in 2022.
The funds in question include the Cosmos Purpose Bitcoin Access ETF, the Cosmos Purpose Ethereum Access ETF and the Cosmos Global Digital Miners Access ETF. The management groups for the ETFs have applied to withdraw their listings on the exchange operated by Cboe Australia Pty.
Cosmos Asset Management emerged as an early leader in the race to launch the first crypto ETF in Australia, but it appears to have entered the market at the wrong time as the total crypto market capitalization lost $2 trillion in value in the past 12 months , which led to a collapse in demand.
“While we strongly believe in the asset class, we are all disappointed by this outcome, but we will continue to follow the process in the best interest of all unitholders,” Dan Annan, CEO of Cosmos, wrote in an email.
Evidence of their poor performance can be found in the assets held by each fund, with the Cosmos Bitcoin and Ethereum funds having assets worth about A$1.1 million ($710,000), while the miners’ vehicle has about A$630,000.
The Global X Bitcoin and Ether funds are still available to investors in Australia and have a combined market capitalization of around A$8.5 million.
While the loss of ETFs is not a huge blow to the market in Australia due to the limited engagement, it does damage the country’s reputation in the eyes of the crypto community, who may now turn elsewhere for their crypto needs.
“Australia’s hopes of becoming Asia’s crypto hub are now fading, especially after Hong Kong just announced a path for Bitcoin and Ether ETFs,” said Rebecca Sin, an ETF analyst at Bloomberg Intelligence.
The analyst referred to an announcement from Hong Kong this week that the government of the special administrative region intends to restore “appropriate” crypto access for retail investors, including the possible introduction of exchange-traded funds for digital assets.
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