The first cryptocurrency exchange-traded funds (ETFs) in Australia debuted trading on Thursday. The launch of these ETFs happened as the market witnessed a major recession, with the prices recording notable declines amid liquidations.
Australia’s first crypto ETFs
Cboe Australia, a securities and derivatives exchange released the 21Shares Bitcoin ETF and ETFS 21Shares Ethereum ETF. These are the first ETFs in Australia that allows investors in the country to gain exposure to the prices of Bitcoin and Ethereum.
Other media reports also added that the Cosmos Purpose Bitcoin Access ETF started trading on Cboe on the same day. The launch of these ETFs could attract more Australians to the buzzing cryptocurrency space. A 2021 study by Swyftx survey revealed that around 20% of Australians owned cryptocurrencies, which is expected to continue growing.
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“We’re pleased to partner with ETF Securities to bring the first crypto ETFs to market in Australia,” said the CEO of Cboe Australia, Vic Jokovic. He also said that these ETFs were “breakthrough products that will pave the way for more Australians to expose their portfolios to cryptocurrency in a regulated manner.”
The launch of these ETFs came as the cryptocurrency market was dealt a blow by the collapse of Terra LUNA and the UST stablecoin. The collapse of these two tokens dampened the agility of new investors, and the three new ETFs on Cboe Australia recorded initial trading volumes of less than $1 million.
Moreover, the ETFs were launched when the market registered a bearish trend. A global sell-off in the prices of Bitcoin and Ethereum affected the value of crypto-related products. However, the market is currently showing strong signs of recovery, which could aid the prices of these ETFs in the long run.
US is yet to approve a crypto ETF
The US Securities and Exchange Commission (SEC) has been hesitant to approve a spot crypto ETF despite growing demand for such a product. In October last year, the commission approved a futures-based Bitcoin ETF that propelled BTC;’s prices to all-time highs.
Recently, the SEC held a private meeting with Grayscale regarding the company’s Bitcoin ETF approval. Grayscale is the world’s largest digital asset manager, and it is planning to convert the Grayscale Bitcoin Trust into an ETF. The SEC has hesitated to approve spot Bitcoin ETFs because of a fear of price manipulation.
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