The launch of Australia’s first three bitcoin (BTC) and Ether (ETH) exchange-traded funds (ETFs), scheduled for Wednesday, has been delayed due to the need for more “checks”.
The exchange that lists the Cosmos Asset Management Spot Bitcoin ETF, Cboe Australia, issued a statement late on Tuesday stating that “standard pre-trading checks are still being completed” and that a “further update will be provided in the coming days”..
Cboe issued the same notice in relation to two spot ETFs issued by 21Shares that were also scheduled to launch today, a Bitcoin ETF and an Ether ETF..
It is not clear why the products have been delayed, but the Australian Financial Review reports that a “service provider” – an entity such as a stockbroker or major institution with the power to delay listings until it is ready to support trading in the products – could be to blame for the delay..
The underlying asset of the Cosmos ETF is a direct investment in the Canadian Purpose Bitcoin ETF, North America’s first Bitcoin exchange-traded fund.. The funds issued by 21Shares are backed by Bitcoin and Ether reserves cold-stored by Coinbase.
Toby Chapple, head of operations at Australian wealth management firm Zerocap, told Cointelegraph that the delay was “not a big deal.”. Referring to the Cosmos Bitcoin ETF he added:
“You would think that an ETF that invests in another ETF would be easier to manage, but the broker is just making sure they have all their ducks lined up before they hit the market.”
Cici Lumanaging partner of crypto asset investment and wealth management firm Apollo Capital, he also said it seemed like just a small bump in a long road for funding:
“While this is not an ideal start for ETFs, it will be seen as just a minor bump in an otherwise successful outcome for the Australian crypto industry.”
He added: “The traditional finance sector is trying to figure out how to adapt its businesses to a new asset class, and it’s a journey that both crypto and TradFi are on together”.
Cointelegraph reached out to Cboe Australia, Cosmos, and 21Shares for more information about the delays, but did not get an immediate response.
Cosmos Asset Management’s “Cosmos Purpose Bitcoin Access ETF” received approval from the Australian Stock Exchange (ASX) on April 19 to begin trading after a seven-day notice period. and was expected to attract around $1 billion upon launch.
The two ETFs issued by 21Shares received approval around the same time, aligning all three funds with the same launch date.
21Shares is no stranger to delays for its cryptocurrency ETF products. In early April, the United States Securities and Exchange Commission (SEC) rejected its Bitcoin ETF, which was to be listed on the US exchange Cboe BZX, claiming that it did not meet the requirements to list a financial product.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.