One of the countries around the world that have taken a positive perspective towards the cryptocurrency space is the land Down Under i.e. Australia. The country recently gave approval for two new crypto exchange-traded funds (ETFs). This means that now the total number of crypto ETFs that are available in the country has reached six.
Two new crypto ETFs receive approval
The Cboe Australia exchange has listed the two new spot crypto ETFs that have been approved. The 3iQ Digital Asset Management in Canada launched the two ETFs and they are named 3iQ CoinShares Ether Feeder and the 3iQ CoinShares Bitcoin Feeder. As the name of the two exchange-traded funds indicate, the two underlying cryptocurrencies of these instruments are Ether and Bitcoin, respectively. It should also be noted that a cold wallet on the Gemini exchange is used for storing them.
The two new additions will now join the other ETFs from Cosmos Asset Management and 21Shares that had been scheduled for a launch in April, but were eventually delayed. This is due to the fact that some additional time was required by the service provider for supporting the launch of the products. Eventually, 21Shares launched their crypto ETF in the start of May and it became the first one of its kind to be listed in Australia.
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As far as the crypto ETF from Cosmos is concerned, they ended up launching it on May 31st and it is backed by ether. It is important to note that the ETFs recently launched by 3iQ in Australia are a tad different than the ones that are already available in the Australian market. As opposed to the rest of the ETFs that can be found, the expense ratio of these is the lowest at 1.2%. The expense ratio of the ETFs of Cosmos and 21Shares is around 1.25%.
Low volumes of Australian crypto ETFs
Since the start of the year, the crypto market has been hit by a tough recession. Most of the cryptocurrencies in the market have seen their values slashed in half and this has also had an impact on the prices of the product connected to these digital currencies. Last year in October, the Bitcoin futures ETF had finally received the approval of the US Securities and Exchange Commission (SEC). This had resulted in a boom in the crypto market and its overall market capitalization had hit the $3 trillion mark.
When Cosmos and 21Shares had first launched their first three ETFs, they had had a slow start because as opposed to the $1 billion in trading volumes estimated, they had only managed to achieve $1.3 million. According to the data from Cboe, the two new 3iQ ETFs have been able to achieve 9,754 and 13,592 shares traded of ether and Bitcoin and this puts them at a value of $73,605 and $73,415, respectively. These trading volumes are not even close to that of the other ETFs and this could be because of the condition in the crypto market.