The Australian financial market has been open to crypto assets and other virtual assets allowing companies to craft different investment products, as long as they meet the necessary approval. This is not the case in other countries.
The foremost crypto-based ETFs- Exchange Traded Funds- began its sojourn in the Australian market, though it had been postponed in the past.
The launching of the three crypto ETFs had been delayed in the past for different reasons. 21Shares Bitcoin ETF, Ethereum ETF, and Cosmos Purpose Bitcoin Access ETF are now available to residents of Australia.
The Ethereum ETF product focuses on Ether as its name states. 21 Shares is aimed at spot funds that are focused on both Ether and Bitcoin. As for the Cosmos fund, it is aimed at investing in the Canadian Purpose Bitcoin ETF that an asset worth over $1.1 billion.
Though this may be an innovative change in the crypto market and a win in the crypto space, the coming of the first three ETFs did not receive a warm welcome because of the bearish stare of the market.
In the first hour of trade, both the 21 Shares Bitcoin ETF and the Cosmos Purpose fund traded poorly with $AU 250,000 ($US 173,000).
As for the Ethereum fund, it snatched a volume of about $AU 150,000 ($US 103,000). The market capitalization of the foremost ETFs was between $AU 400,000 ($US 276,000) and $AU 470,000 ($US 324,000).
People view the debit of the ETFs as below expectation, though some are hopeful that the trend will change. Dan Anna, the Chief Executive of Cosmos Asset Management, stated,
“We have seen good reception from the market for day one trading to this point. We’re happy with how the product is trading regarding spreads.”
He believes that the lackluster performance may be linked to the current bearish crypto market conditions.