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Highlights:
- According to three different circulars issued by Cboe Australia on 9 May, crypto ETFs will begin trading on Thursday
- Canadian firm 3iQ has also submitted an application to the ASX last month to offer units of Ethereum and Bitcoin ETFs on the Cboe Australia exchange
- Crypto ETFs are set to debut in Australia at a time when the crypto space is witnessing severe selloff
In an exciting development for Australian crypto enthusiasts, crypto exchange traded funds (ETFs) are set to begin trading in the country on Thursday (12 May). The proposal, which was held up due to some procedural issues, has been cleared. According to three different circulars issued by Cboe Australia on 9 May, three different crypto ETFs will begin trading on Thursday.
These ETFs are Cosmos Purpose Bitcoin Access ETF (code: CBTC), ETFS 21Shares Bitcoin ETF (code: EBTC), and ETFS 21Shares Ethereum ETF (code: EETH).
Worth mentioning here is that these listings were earlier scheduled for 27 April. But on 26 April, the Cboe Australia exchange delayed the listing of all these funds due to some procedural issues, which the exchange called as “standard checks”.
Also Read: Why has Binance delisted Ellipsis (EPS) crypto trading pairs?
It may be noted that Canadian firm 3iQ, which has already listed spot Bitcoin and Ethereum ETFs on the Toronto Stock Exchange (TSX), submitted an application to the Australian Securities Exchange (ASX) last month to offer units of Ethereum and Bitcoin ETFs on the Cboe Australia exchange. This ETF will provide exposure to crypto assets by investing in the existing crypto ETFs on the TSX, in line with Cosmos’ ETF, which invests in the Canadian Purpose Bitcoin ETF.
Those who have apprehensions about investing directly in the crypto market due the ultra-high volatility, will now get a chance to take exposure to these digital assets through these ETFs.
However, experts say there could be lukewarm interest for these ETFs now as it comes at a time when the crypto space is witnessing severe selloff. In the last five days, the crypto market has lost over US$400 billion in market capitalization, having fallen from US$1.80 trillion to US$1.40 trillion. Bitcoin, the bellwether cryptocurrency, which commands over 40% of the crypto market capitalisation, has corrected nearly 27% in the last one month, while Ethereum, the second biggest cryptocurrency, has plunged 28% in this time frame.
Also Read: Listing on Binance sends Project Galaxy (GAL) crypto soaring 24%
Interest rate tightening by global central banks coupled with fears of economic slowdown have led to a selloff in risk assets globally and crypto assets are no exception. Some crypto experts have warned that this selloff could just be the beginning of a wider mass correction.
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