Australia’s First Bitcoin ETFs Are Flop, Here’s Why
Australia’s First Bitcoin ETFs Are Flop, Here’s Why
The debut of Australia’s first Bitcoin ETF was unimpressive on Thursday. CBOE Global Markets has introduced the Cosmos Purpose Bitcoin Access ETF, ETFS 21Shares Bitcoin ETF (EBTC), and ETFS 21Shares Ethereum ETF (EETH).
On their first day, the three investment vehicles barely raised AUD$2 million (approximately $1.37 million). With AUD$954,925 ($655,000), ETFS 21Shares Bitcoin ETF (EBTC) took the top. The “relatively muted” trade volumes, according to Kanish Chugh, head of distribution at ETF Securities, are due to the overall cryptocurrency market selloff.
On the Bitstamp market earlier today, Bitcoin fell to $25,401, its lowest level since December 2020. At press time, the cryptocurrency had partially rebounded to $27,851.
In addition, ASX Clear’s “prohibitively expensive” margin requirements led to weak demand, according to Chugh. Due to the 42 percent collateral, major brokers have been hesitant to support the products.
The long-awaited debut of Australia’s first crypto ETFs was scheduled for late April. Their launch, according to U.Today, has been postponed owing to a problem with an unknown third-party broker.
Australia isn’t the first country to introduce a Bitcoin exchange-traded fund (ETF). Last February, Canada started the trend. On its debut day, the Purpose Bitcoin ETF generated a record-breaking CAD $260 million ($208 million) in trading volume.
The BetaShares Crypto Innovators ETF (CRYP), which debuted in Australia in November, has increased its market capitalization by $40 million to $27.7 million.
For most investors, Bitcoin was “a bull market plaything,” according to Eric Balchunas, senior ETF analyst at Bloomberg. Demand has decreased now that crypto is in a bear market.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Hazel
CoinCu News
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Australia’s First Bitcoin ETFs Are Flop, Here’s Why
The debut of Australia’s first Bitcoin ETF was unimpressive on Thursday. CBOE Global Markets has introduced the Cosmos Purpose Bitcoin Access ETF, ETFS 21Shares Bitcoin ETF (EBTC), and ETFS 21Shares Ethereum ETF (EETH).
On their first day, the three investment vehicles barely raised AUD$2 million (approximately $1.37 million). With AUD$954,925 ($655,000), ETFS 21Shares Bitcoin ETF (EBTC) took the top. The “relatively muted” trade volumes, according to Kanish Chugh, head of distribution at ETF Securities, are due to the overall cryptocurrency market selloff.
On the Bitstamp market earlier today, Bitcoin fell to $25,401, its lowest level since December 2020. At press time, the cryptocurrency had partially rebounded to $27,851.
In addition, ASX Clear’s “prohibitively expensive” margin requirements led to weak demand, according to Chugh. Due to the 42 percent collateral, major brokers have been hesitant to support the products.
The long-awaited debut of Australia’s first crypto ETFs was scheduled for late April. Their launch, according to U.Today, has been postponed owing to a problem with an unknown third-party broker.
Australia isn’t the first country to introduce a Bitcoin exchange-traded fund (ETF). Last February, Canada started the trend. On its debut day, the Purpose Bitcoin ETF generated a record-breaking CAD $260 million ($208 million) in trading volume.
The BetaShares Crypto Innovators ETF (CRYP), which debuted in Australia in November, has increased its market capitalization by $40 million to $27.7 million.
For most investors, Bitcoin was “a bull market plaything,” according to Eric Balchunas, senior ETF analyst at Bloomberg. Demand has decreased now that crypto is in a bear market.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Hazel
CoinCu News
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