Australian Asset Manager To Delist Crypto ETFs After 6 Months

In the same year that Australia’s first crypto exchange-traded funds (ETF) launched — they’re ending: the asset manager behind the highly-anticipated ETFs has said that it intends to delist its funds that invest in Bitcoin (BTC) and Ethereum (ETH).

On November 2, Cosmos Asset Management advised the Cboe exchange of its plan to revoke its Bitcoin and Ethereum ETFs and that trading had been halted. 

Cosmos Company Secretary Hollie Wight said that after receiving “in-principle advice for Cboe that it will agree to the request”, the funds would be delisted effective from close of trade on Tuesday, November 8, 2022.

Bitcoin ETF Not Immune From Crypto Winter

It’s a disappointing end for the first Bitcoin ETF listed on the Australian stock market, but not totally surprising given broader crypto market conditions. 

Cosmos indicated that from November 9, the company would return funds to investors and that Cosmos would cover the funds’ closure costs.

“Subject to Cboe’s formal decision on the application, the responsible entity will commence the process on 9 November 2022 to redeem all investors at NAV as calculated by the Funds’ administrator and return their capital as soon as possible.”

Cosmos Company Secretary Hollie Wight

There was much hoopla when Cosmos launched its Purpose Bitcoin Access ETF (CBTC) and Purpose Ethereum Access ETF (CPET) funds in early 2022. The announcement was closely followed by news of competing Bitcoin ETFs from 21Shares.

But almost simultaneously the crypto winter was cooling the market. The price of Cosmos’ Bitcoin ETF has fallen around 19 percent since its launch in May.

CBTC price fall in the past year. Source: Cboe Australia

Disclaimer:
The content and views expressed in the articles are those of the original authors own and are not necessarily the views of Crypto News. We do actively check all our content for accuracy to help protect our readers. This article content and links to external third-parties is included for information and entertainment purposes. It is not financial advice. Please do your own research before participating.


Crypto News By Jody McDonald

Source link