Crypto ETF launch in Australia gets delayed

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 Crypto ETF launch in Australia gets delayed
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Highlights

  • The launch of the first crypto ETF in Australia has been delayed, the Cboe Australian exchange announced today.
  • The Cboe exchange said that the delay is simply due to the double checking of routine checks and balances.
  • The Australian Financial Review, however, has had a completely different take, blaming the delay on a “service provider downstream”, explaining that the entity is a “prime” or “executing” broker.

The launch of the first crypto ETF in Australia has been delayed, the Cboe Australian exchange announced today.

ETF Securities and 21 Shares had planned to launch Australia’s first bitcoin spot exchange-traded fund (ETF) on April 27, however the listing has now been delayed and it’s unclear when it will begin trading.

The announcement came as a surprise for traders and investors as both the corporate regulator and national clearing house, ASX Clear, had already approved the launch.

However, the Cboe exchange said that the delay is simply due to the double checking of routine checks and balances.

The Australian Financial Review, however, has had a completely different take, blaming the delay on a “service provider downstream”, explaining that the entity is a “prime” or “executing” broker. The broker in question, the paper says, is needed for the ETF to operate in the marketplace.

Cboe

Image Source: © Mohammedsoliman4 | Megapixl.com

What Is a Crypto ETF?

An ETF stands for an Exchange Traded Fund, which consists of a group or an index of assets that an investor can put money into on an exchange.

Also Read: GMT and FITFI cryptos: Is move-to-earn the next big thing?

A crypto ETF is a comparatively new phenomenon and consists of cryptocurrencies. The phenomenon of crypto ETFs has been rare up until this point due to the unregulated nature of digital assets.

There are many benefits of crypto ETFs, including much lower ownership costs as well as the outsourcing of the steep learning curve needed to trade cryptocurrencies.

Cboe has stated that it will provide an update in the coming days.

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