Cosmos Asset Management (CAM), the Sydney-based crypto fund management company who is in charge of the Cosmos Purpose Bitcoin Access ETF (CBTC), the Cosmos Purpose Ethereum Access ETF (CPET), and the Cosmos Global Digital Miners Access ETF (DIGA), has requested that their quotes be removed from the stock exchange that is managed by Cboe Australia Pty (formerly Chi-X).
The newest victims of the recent sell-off in digital assets are this group of cryptocurrency exchange-traded funds (ETFs) launched in Australia with great excitement.
Sadly, these are now on their way to being delisted from the exchange, according to a report by Bloomberg published on Wednesday, Nov. 2.
The Crypto ETFs in Australia
In the early months of this year, the cryptocurrency fund manager CAM participated in the competition to launch the first crypto ETFs in Australia. However, investors' enthusiasm for virtual currency has diminished due to a $2 trillion decline in the value of digital assets over the last approximately 12 months.
While Cosmos refused to elaborate on the cause of delisting, the chief executive Dan Annan assured investors that their funds were safe on the cryptocurrency market.
He said in an email via Bloomberg that the company would continue to pursue the process in the best interest of all unit holders. He expressed that they are all dissatisfied with what happened as they "strongly believe in the asset class."
According to insiders, the company had a hard time attracting enough investors to fund the high expenses associated with managing the crypto ETFs. These expenses included things like the special and expensive professional indemnity insurance policies that were necessary, The Australian Financial Review (AFR) reported.
The total assets of the Cosmos Bitcoin and Ethereum funds, which are used as inputs for the Toronto-listed funds managed by Purpose Investments, come to around AU$1.1 million ($710,000). A total of around AU$630,000 ($405,000) is held in a stock portfolio by the miners' vehicle.
The Global X Bitcoin and Ether funds are still open to investors in Australia, and their total market value is around AU$8.5 million ($5.5 million).
The Crypto Exchange-traded Product Assets Across the Globe
According to statistics from Bloomberg Intelligence, most crypto exchange-traded product assets, around 83%, are located in the US, followed by Europe with 16%.
The majority of the remaining is located in Brazil, while the Asia-Pacific area plays a minor role in the overall picture.
Rebecca Sin, an ETF analyst at Bloomberg Intelligence, remarked that Australia's goal of becoming Asia's crypto powerhouse is now shrinking, notably as Hong Kong just announced a gateway for Bitcoin and Ether ETFs.
As part of its efforts to establish itself as Asia's primary hub for virtual assets, Hong Kong revealed a comprehensive legislative overhaul permitting ETFs based on cryptocurrency futures.
This article is owned by Tech Times
Written by Trisha Kae Andrada
