Australia’s first 3 crypto ETFs all miss launch day

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The launch of Australia’s first three Bit­coin (BTC) and Ethereum (ETH) exchange-trad­ed funds (ETF) sched­uled for today, has been delayed as a result of fur­ther “checks” need­ing to be completed.

The exchange list­ing the Bit­coin Spot ETF from Cos­mos Asset Man­age­ment, Cboe Aus­tralia, released a state­ment late Tues­day stat­ing that “stan­dard checks pri­or to the com­mence­ment of trad­ing are still being com­plet­ed” and a “fur­ther update will be pro­vid­ed in the com­ing days.”

Cboe issued the same notice regard­ing two spot ETFs issued by 21Shares also sched­uled for launch today, a Bit­coin ETF and an Ethereum ETF.

It’s unclear why the prod­ucts are delayed with the Aus­tralian Finan­cial Review report­ing that a “ser­vice provider down­stream” — an enti­ty such as a prime bro­ker or major insti­tu­tion with the pow­er to delay list­ings until it’s ready to sup­port the trade of the prod­ucts — could be to blame for the hold up.

The under­ly­ing asset for the Cos­mos ETF is a direct invest­ment into the Cana­di­an Pur­pose Bit­coin ETF, North America’s first Bit­coin exchange-trad­ed fund. The funds issued by 21Shares are backed by Bit­coin and Ethereum reserves held in cold stor­age by Coinbase.

Toby Chap­ple, Head of Trad­ing at Aus­tralian wealth man­age­ment firm Zero­cap, told Coin­tele­graph the delay was “not a big deal.” Refer­ring to the Cos­mos Bit­coin ETF he added:

“You would think an ETF which invests in anoth­er ETF would be eas­i­er to han­dle, but the bro­ker will just be ensur­ing they have all their ducks lined up before they go live.”

Cici Lu, Man­ag­ing Part­ner at cryp­to asset invest­ment and wealth man­age­ment firm Apol­lo Cap­i­tal also said that it seemed like just a small bump in a long road for the funds:

“While this isn’t an ide­al start for the ETF’s, it will be looked at as only a minor speed bump in an oth­er­wise suc­cess­ful result for the cryp­to asset indus­try in Australia.”

He added: “The tra­di­tion­al finance sec­tor is try­ing to get its head around how to adapt their busi­ness­es to a new asset class, it is a jour­ney both cryp­to and Trad­Fi are on together. ”

Coin­tele­graph con­tact­ed Cboe Aus­tralia, Cos­mos and 21Shares for more infor­ma­tion regard­ing the delays but did not imme­di­ate­ly hear back.

Cos­mos Asset Management’s “Cos­mos Pur­pose Bit­coin Access ETF” received approval from the Aus­tralian Secu­ri­ties Exchange (ASX) on April 19 to begin trad­ing fol­low­ing a sev­en-day notice peri­od and was expect­ed to attract around $1 bil­lion after its launch.

The two ETFs issued by 21Shares received approval around the same time, align­ing all three funds with the same launch date.

Relat­ed: Aus­tralian pru­den­tial reg­u­la­tor releas­es roadmap for cryp­tocur­ren­cy policy

21Shares isn’t a stranger to hold ups with its cryp­to ETF prod­ucts Ear­li­er in April the Unit­ed Stat­ed Secu­ri­ties and Exchange Com­mis­sion (SEC) reject­ed its Bit­coin ETF which was to list on the US Cboe BZX Exchange say­ing the exchange didn’t meet require­ments for list­ing a finan­cial product.

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