Amid the recent drop in digital asset prices, three crypto exchange-traded funds (ETFs) introduced in Australia earlier this year will be delisted.
Bloomberg reported that the Cboe Australia-run exchange had received requests from Cosmos Purpose Bitcoin Access ETF, Cosmos Purpose Ethereum Access ETF, and Cosmos Global Digital Miners Access ETF to cancel their listings.
Results Disappoint Issuers
Dan Annan, CEO of Cosmos, said: “While we are strong believers in the asset class, we are all disappointed with this result; however, we will continue to follow the process in the best interest of all unit owners.”
Australia’s first crypto ETFs debuted on local exchange Cboe Global Markets on May 12, following a delayed launch with Cosmos Purpose Bitcoin Access ETF as one of the leading candidates.
The report noted that Global X Bitcoin and Ethereum funds, which have a combined market value of around A$8.5 million, are still available in Australia, adding that Cosmos Bitcoin and Ethereum Funds, which feed into funds listed in Toronto and managed by Purpose Investments, have total assets of about A$1.1 million ($710,000). The miners’ vehicle, on the other hand, has about A$630,000.
Australia Waits for Passage of Cryptocurrency Bill
Bloomberg analyst Rebecca Sin explained: “Australia’s hope of becoming Asia’s crypto hub is now dimming, especially after Hong Kong just announced a path for Bitcoin and Ether ETFs.”
On October 31, the Hong Kong government released a policy statement on the growth of virtual assets in the Special Administrative Region (SAR). Additionally, the government stated that it would be open to the idea of allowing cryptocurrency ETFs on its markets.
Rebecca Sin, an ETF analyst at Bloomberg Intelligence, explained that, “Australia’s hope of becoming Asia’s crypto hub now diminishes, especially after Hong Kong just announced a pathway for Bitcoin and Ether ETFs.”
Another problem Australia seems to be dealing with is the sky-high inflation rate. The rate of inflation in the country hit a 32-year high, with more domestic investors flocking to the digital asset sector.
Last month, Australian Liberal Senator Andrew Bragg introduced a bill to regulate crypto assets to ensure Australia “keeps up with the global pace.”
The Digital Assets (Market Regulation) Bill 2022 closed for public consultation on October 31. It now awaits parliament’s approval.
If passed, it will introduce licensing of exchanges and other crypto service providers, stablecoin regulations, and disclosure requirements for central bank digital currencies (CBDCs), including Australian facilitators of the Chinese digital yuan ( e-RMB).
By Audy Castaneda
