Australias First Crypto ETFs Get a Lukewarm Reception as Markets Plunge

Read Time:1 Minute

– The inaugural cryptocurrency-focused exchange-traded funds (ETFs) have begun trading in Australia amid a wider market sell-off that could be the beginning of another prolonged crypto winter.

– Australias first crypto ETFs debuted on the Cboe Global Markets local exchange on May 12 following a delayed launch.

– The three funds are 21Shares Bitcoin ETF, Ethereum ETF, and Cosmos Purpose Bitcoin Access ETF.

– The 21Shares products are spot funds that will invest directly in BTC and ETH while the Cosmos fund will invest in the Canadian Purpose Bitcoin ETF which has around $1.1 billion in assets according to Bloomberg.

– The funds were met with lukewarm reception as crypto markets continued to tank hard on May 12 following a week of heavy losses.

– The Cosmos Purpose fund and 21Shares Bitcoin ETF had lackluster trading volumes of about $AU 250,000 ($US 173,000) in the first hour of trade.

– Market analysts used the terms somewhat muted and a fizzer to describe the first half days trading. However, Cosmos Asset Management chief executive Dan Annan was unperturbed, stating that there was no doubt that some investors are currently cautious with the current market volatility, but remained upbeat about longer-term prospects.

– The Aussie ETF debut comes on a day when crypto markets have tanked by more than 15% shedding a whopping $225 billion from total market capitalization.

– The total market cap is currently at $1.26 trillion, its lowest level since July 2021 according to CoinGecko.

– Markets have now tanked almost 60% since their November all-time high of just over $3 trillion confirming that the crypto winter has arrived and a prolonged bear market is likely to ensue.

– Bitcoin has plunged more than 10% to $27,836 at the time of writing while Ethereum has been smashed 17% in a fall to $1,900 for the first time in ten months.

bic artwork Australia crypto Australias First Crypto ETFs Get a Lukewarm Reception as Markets Plunge
Australias First Crypto ETFs Get a Lukewarm Reception as Markets Plunge 2

Leave a Reply