The recent slump in the broader crypto market has taken its toll on three Australian crypto exchange-traded funds (ETFs), which were initially launched earlier in the year.
According to Bloomberg’s latest report, Cleo Australia, the country’s securities and derivatives exchange has received filings from three different ETF issuers. All the applications were made concerning the termination of the entities’ quotations.
According to Dan Annan, an executive at Cosmos, the issuers were disappointed with the trading outcome.
Annan stated:
“We have confidence in the investment products, but the result has been disappointing to all. “Despite the setback, the entities will continue to uphold the process in the interest of all concerned stakeholders.”
As the first crypto ETF to debut on the Cboe Global Markets platform on May 12, the investment tool has generated widespread excitement in the Australian digital assets ecosystem.
However, the Bloomberg report indicates that the Global X Bitcoin and Ethereum assets are still accessible in the country. Both have a combined market valuation of close to AUD 8.5 million.
Australia Brace Up for Crypto Regulations Approval
Rebecca Sin, a Bloomberg expert, revealed that Australia’s plan of becoming a crypto hub within the Asian region has fallen like a pack of cards after Hong Kong launched its Bitcoin and Ether ETF roadmap. The Hong Kong government released a policy statement on the expansion of virtual financial assets on October 31. The Hong Kong government also noted that it is open to introducing crypto ETFs within its jurisdiction.
However, Australia is contending with other issues like the rising inflation rate aside from Hong Kong’s move. The country’s inflation rate is at its highest level in 32 years, with increasing numbers of people moving their funds to the digital asset space.
In October, Senator Andrew Bragg sponsored a bill to regulate crypto assets in the country. The lawmaker seeks to make Australia’s crypto ecosystem on par with the global standard. Following the closure of the public consultation on the Digital Assets Bill 2022, the country awaits the decision of the legislative arm.
Should the bill be assented to by lawmakers, this will pave the way for licensing crypto exchanges alongside other digital financial service providers. In addition, the bill will also include stablecoin regulations and the requirements for issuing central bank digital currencies (CBDC).
Australia’s approval of crypto ETFs have continued to gain traction in the industry due to the flexibility it offers investors. ETFs can hold more than one token and are continuously seen as a good diversification tool in the virtual asset industry. With ETFs, investors can diversify part of their portfolios from the traditional market.
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