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2 years ago

Australia’s First Bitcoin and Ethereum ETFs Delayed: Report

Jordan Lyanchev Apr 26, 2022 11:37
Australia will have to wait some more time to see its first exchange-traded funds tracking the performance of bitcoin and ether.

Amid the growing anticipation for Australia’s upcoming crypto ETFs, new reports emerged claiming that the launch, originally scheduled to be tomorrow, will be postponed, blaming a third-party broker.

  • CryptoPotato reported last week the decision made by ASX Clear – the country’s main equity capital market watchdog – to greenlight Australia’s first Bitcoin ETF. This came as four market participants said they could meet the stringent margin requirements needed to cover the BTC settlement risks.
  • On the very next day, 21Shares and ETF Securities announced a joint venture that would have enabled them to release exchange-traded funds tracking BTC and ETH. All products were set to go live on April 27.
  • However, a new AFR report from today (April 26) asserted that Aussies will have to wait longer to see a crypto ETF.
  • The launch was delayed because of an undisclosed third-party broker, which reportedly blocked the products from going live on the Cboe Australia exchange.

“Standard checks prior to the commencement of trading are still being completed,” reads a communication letter by the exchange.

  • Head of Distribution at ETF Securities – Kanish Chugh – confirmed the delay, saying it wasn’t his company’s fault nor the exchange’s.

“We believe the issue affects all fund managers equally and has caught everyone by surprise. We are working to resolve this as quickly as possible and remain on track to launch Australia’s first bitcoin and ethereum ETFs.” – Chugh added.

  • According to the report, the difference between the two types of ETFs could mean that the one proposed by Cosmos might see the light of day first.
  • As previously reported, the Cosmos BTC ETF is a “fund of funds” which invests in Canada’s Purpose Bitcoin ETF. In contrast, the ones by ETF Securities and 21Shares are old-fashioned spot ETFs.
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Jordan Lyanchev

Jordan got into crypto in 2016 by trading and investing. He began writing about blockchain technology in 2017 and now serves as CryptoPotato's Assistant Editor-in-Chief. He has managed numerous crypto-related projects and is passionate about all things blockchain. Contact Jordan: LinkedIn