Australia has announced the launching of its first cryptocurrency exchange-traded funds (ETFs). It will begin trading on Thursday, May 12. After a delay of two weeks, these ETFs will be up for trading on Australia’s Cboe Exchange. As per the announcement made by the Cboe Exchange, ETFs now have the desired green signal to enter the market this week.
The recent development means that the crypto community of Australia will now have more ETF-related options to choose from. The three ETFs that are set to make an appearance include a Bitcoin ETF from Cosmos Asset Management. Moreover, the other two are the Bitcoin and Ethereum spot ETFs from 21Shares.
ETF Securities and 21Shares joined hands to develop ETF Securities crypto funds. The former will run the products, whereas 21Shares will offer support and expertise towards operations and research. 21Shares is a renowned ETF issuer from Switzerland. A representative from 21Shares confirmed the developing news story to the media.
The previous last-minute delay!
These were supposed to begin trading on April 27. They had received the approval of the most prominent market regulator of Australia, ASX Clear. The heads up from ASX Clear meant that there was no visible hindrance in launching. However, another issue came to the surface, which caught everyone off guard.
It was reported that a powerful prime broker criticized the use of cryptocurrencies over their volatility. This broker had blocked the funds for the issuance of ETFs. Therefore, it was impossible to launch the exchange-traded funds without these funds.
The Cboe Exchange and other market makers took their time to find another broker, as the launch was postponed by two weeks. Also, they were unable to convince the first broker to change their stance. However, the issue was sorted out, but it indeed brought the launch into the unwanted spotlight.
Through this delay, 3iQ Digital Asset Management from Canada also joined the ETF race. On April 28, the company proposed offering two crypto funds to the Australian Securities Exchange (ASX). It was said that upon approval, BT3Q and ET3Q would trade on the Cboe Exchange. Both of these were the products of 3iQ. Moreover, these two products would also track the performance of BTC and ETH.
Even though it is still not confirmed if the 3iQ products will be listed or not, it seems that 3iQ will not become the first Australian cryptocurrency ETF. The prize of becoming the first Australian crypto ETF could have been over $1 billion in inflows. Therefore, companies like 3iQ have been eyeing this major prize.
The United States continues to resist Bitcoin spot ETFs
The exchange-traded funds-related development in Australia is considered a progressing one for the country’s crypto community. Before Australia, Switzerland and Canada have also paved the way for their first cryptocurrency ETFs. On the contrary, the United States is still reluctant to adopt Bitcoin spot ETFs. The country has rejected several applications for Bitcoin spot ETFs. On the other hand, the US Securities Exchange Commission (SEC) has accepted a few Bitcoin Futures ETFs.
Nonetheless, the number of ETF users is continuously increasing in the global community. These EFTs offer attractive features of stocks, bonds, and mutual funds. Moreover, their price fluctuates according to the supply and demand of the market. There are different types of ETFs in the market. They are backed by different assets as well.
However, the increasing popularity of exchange-traded funds is forcing countries to explore their usability. These ETFs have the capacity to lend a supporting hand to the economies of various countries. This is why Australia, alongside Canada and Switzerland, have included ETFs in their economic ecosystem. Some positive results in these countries will further urge countries like the US to consider ETFs.