Published: 26.04.2022
Article reading time:
2 minutes.
Australia suffered a temporary fiasco when launching exchange-traded funds that track the dynamics of bitcoin and ether.
The launch of three cryptocurrency exchange-traded funds (ETFs) was halted less than 24 hours before a proposed listing on the CBOE Australia stock exchange, according to the Australian Financial Review. The CBOE confirmed that it is still preparing for the launch of these investment products:
“Standard pre-bid checks are still being performed.”
The delay is blamed on a “primary” or “executing” broker that has not yet approved products due to a delay in appointing a market maker to launch. ETF Securities head of distribution Kanish Chugh said the delay “is not a fault of ETF Securities or the exchange.” According to him, the fund is trying to solve the problem as soon as possible in order to launch ETFs for bitcoins and ethers.
“Cosmos Asset Management has been approved by the exchange to start listing and we are working towards that goal,” Chu said.
The head of the department emphasized that the problem affected all fund managers, taking them by surprise. In turn, CBOE Australia said that the update will be provided “in the coming days.”
However, there is a difference between the two types of ETFs for cryptocurrencies and there is a possibility that the Cosmos ETF will be launched in Australia first. The fact is that Cosmos ETF is a “fund of funds” that invests in the Canadian Purpose Bitcoin ETF. Whereas the Securities ETF and 21Shares are traditional spot cryptocurrency exchange-traded funds.
Last week, the main regulator of the equity capital market ASX Clear approved the first bitcoin ETF in Australia. This comes after four ETF issuers agreed to cover margin requirements for listing similar investment products. The very next day, 21Shares and ETF Securities announced a joint venture to launch exchange-traded funds that track bitcoin and ether. All investment products were scheduled to launch on April 27.
Source: Bits
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