Australia’s First Crypto ETF to be Delisted Soon: Report
Asset manager Cosmos is planning to delist its Bitcoin and Ether ETFs in Australia as a result of the ongoing crypto winter, Bloomberg reported Wednesday. Cosmos was the first company to launch crypto ETFs in the country after launching it in April 2022 on the Cboe stock exchange.
Cosmos to Delist its $710K Crypto ETFs Amid Market Slump
Cosmos Asset Management intends to delist its Bitcoin (BTC) and Ether (ETH) exchange-traded funds (ETFs) from the Cboe stock exchange, according to a filing with Cboe. The move marks the latest victim of the ongoing downturn that has wiped over $2 trillion off the crypto market cap in recent months.
“The management teams behind the Cosmos Purpose Bitcoin Access ETF, Cosmos Purpose Ethereum Access ETF and Cosmos Global Digital Miners Access ETF applied to revoke their quotations on the exchange run by Cboe Australia Pty,” report states.
Crypto Winter Spurs Delisting of Bitcoin, Ether ETFs in Australia
The Sydney-based Cosmos was the first firm to introduce crypto ETFs in Australia in April 2022, followed by two spot ETFs launched by 21Shares. The two funds invest in BTC and ETH via the Purpose Bitcoin ETF and Purpose Ether ETF, both of which are listed on the Toronto Stock Exchange.
“While we strongly believe 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 holders.”
– Dan Annan, CEO of Cosmos Asset Management
In addition to BTC and ETH funds, Cosmos also filed to delist its Global Digital Miners Access ETF. The former two have a total of $710,000 in assets under management, while the miners vehicle manages around $405,000.
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Crypto ETFs Struggling After a Stellar 2021
Cosmos’s two funds recorded an unimpressive start following their launch earlier this year as trading volumes missed expectations. The ETFs continued to struggle in the following months as the crypto winter worsened amid rising inflation and collapsing crypto projects.
The market downturn affected almost every crypto ETF, many of which were launched during the crypto boom in the fall of 2021. Melanion Capital’s fund has been the worst-performing crypto ETF, plummeting more than 76% since its launch last year.
Rebecca Sin, an ETF analyst at Bloomberg Intelligence, noted that “Australia’s hopes of becoming Asia’s crypto hub” are now fading, particularly after Hong Kong reconsidered its stance on crypto ETFs and tokenized securities. The city is looking to legalize crypto trading in 2023 as it looks to restore its finance hub status.
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