Crypto Market Rout Forces Delisting of Australia ETFs

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Amid the recent decline in digital asset prices, three crypto exchange-traded funds (ETFs) introduced in Australia earlier this year are set to be delisted.

Bloomberg reported on Wednesday that the exchange administered by Cboe Australia had received applications from Cosmos Purpose Bitcoin Access ETF, Cosmos Purpose Ethereum Access ETF, and Cosmos Global Digital Miners Access ETF to cancel their quotations.

Results Disappoint Issuers

Dan Annan, chief executive at Cosmos, said, “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,”

Australia’s first crypto ETFs debuted on the Cboe Global Markets local exchange on May 12 following a delayed launch with Cosmos Purpose Bitcoin Access ETF as one of the front runners.

The report noted that the Global X Bitcoin and Ethereum funds, which have a combined market value of about A$8.5 million, are still accessible in Australia – further adding that approximately A$1.1 million ($710,000) worth of assets is held by the Cosmos Bitcoin and Ethereum funds, which feed into Toronto-listed funds managed by Purpose Investments.

Australia Awaits Approval of Draft Crypto Bill

Bloomberg analyst Rebecca Sin explained, “Australia’s hope of becoming Asia’s crypto hub now diminishes, especially after Hong Kong just announced a pathway for Bitcoin and Ether ETFs.”

A policy statement on the growth of virtual assets in the Special Administrative Region (SAR) was released by the Hong Kong government on Oct. 31. In addition, the government declared that it would be open to the idea of allowing cryptocurrency ETFs on its markets.

Another problem Australia seems to be dealing with is the sky-high inflation rate. The inflation rate in the country hit a 32-year-high, with more domestic investors flocking to the digital asset sector.

Last month, Australian Liberal Senator Andrew Bragg presented a bill to regulate crypto assets to ensure that Australia “keeps up with the global pace.”

The Digital Assets (Market Regulation) Bill 2022 closed for public consultation on Oct. 31. It now awaits parliament’s nod.

If approved, it will introduce the licensing of exchanges and other crypto service providers, stablecoin regulations, and disclosure requirements for central bank digital currencies (CBDCs), including Australian facilitators of the Chinese digital yuan (e-RMB).


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