Australia’s first cryptocurrency ETF to be delisted: report

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Asset manager Cosmos plans to delist its bitcoin and ethereum ETFs in Australia due to the ongoing crypto winter, Bloomberg reported on Wednesday. Cosmos became the first company in the country to launch a cryptocurrency ETF after launching on the Cboe Stock Exchange in April 2022.

Cosmos to delist its $710K cryptocurrency ETF amid market downturn

Cosmos Asset Management intends to delist its bitcoin (BTC) and ethereum (ETH) exchange-traded funds (ETFs) from the Cboe stock exchange, according to a filing with Cboe. The move marks the latest victim of an ongoing downturn that has wiped more than $2 trillion off the cryptocurrency market cap in recent months.

“The management team behind Cosmos Purpose Bitcoin Access ETF, Cosmos Purpose Ethereum Access ETF and Cosmos Global Digital Miners Access ETF has applied to withdraw its offer from exchanges operated by Cboe Australia Pty,” the report states.

Crypto Winter Stimulates Australian Bitcoin, Ether ETFs Delisted

Sydney-based Cosmos was the first to launch a cryptocurrency ETF in Australia in April 2022, followed by two spot ETFs from 21Shares. The two funds invest in BTC and ETH through the Purpose Bitcoin ETF and the Purpose Ethereum ETF, both of which are listed on the Toronto Stock Exchange.

“While we believe strongly in the asset class, we are all disappointed by this outcome, however, we will continue to follow this process in the best interests of all unitholders.”

– Dan Annan, CEO, Cosmos Asset Management

In addition to the BTC and ETH funds, Cosmos has also applied to delist its Global Digital Miners Access ETF. The first two have total assets under management of $710,000, while Miner Vehicles has assets under management of approximately $405,000.

Crypto ETFs struggle after a stellar 2021

Two of Cosmos’ funds have had a lackluster performance after launching earlier this year due to lower-than-expected trading volumes. ETFs continued to struggle in the following months as the crypto winter worsened as inflation increased and crypto projects collapsed.

The market downturn has affected nearly every cryptocurrency ETF, many of which were launched during the fall 2021 cryptocurrency boom. Melanion Capital’s fund has been the worst-performing cryptocurrency ETF, plunging more than 76% since its launch last year.

Rebecca Sin, an ETF analyst at Bloomberg Intelligence, noted that “Australia’s hopes of becoming a crypto hub in Asia” are now fading, especially after Hong Kong reconsidered its stance on crypto ETFs and tokenized securities. The city hopes to legalize cryptocurrency trading in 2023 to restore its status as a financial center.

Have you invested in cryptocurrency ETFs before? Let us know in the comments below.

About the author

Tim Fries is the co-founder of The Tokenist. He holds a Bachelor of Science degree. in Mechanical Engineering from the University of Michigan and an MBA from the University of Chicago Booth School of Business. Tim was a senior associate on the investment team in RW Baird’s US private equity division and was also a co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.

Source of information: Compiled from THETOKENIST by 0x information.The copyright belongs to the author Tim Fries and may not be reproduced without permission

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