Australian Asset Manager Removes Bitcoin and Ethereum ETFs After Just 6 Months

The asset manager behind two of Australia’s first exchange-traded funds (ETFs) submitted a request to delist the much-touted investment vehicles just months after their launch.

The fund in charge of Cosmos Asset Management’s ETFs said in a message To the local Cboe Stock and Derivatives exchange that will apply it to withdraw Bitcoin and Ethereum funds from the market.

The Cosmos Purpose Bitcoin Access ETF (CBTC) and Cosmos Purpose Ethereum Access ETF (CPET) were both It was launched in May This year, along with two competing funds listed on the same day, marking the first fund to be listed on the Australian stock market.

Another fund that invested in crypto-mining companies will come under the symbol DIGA also drawn from the market.

The process of releasing funds was slow, suffered from delays Until the last moment before listing.

When CBTC started trading on May 12, 2022, the crypto world was in a state of collapse The collapse of the Terra ecosystem.

The resulting bear market is believed to have contributed to Cosmo’s difficulties, the sources said speak The Australian Financial Audit The company was struggling to get enough momentum to cover the high costs of managing the fund.

In the six months of trading, the price of the ETF Cosmos CBTC is down about 19%, while the CPET is down about 13.8%. Trading in both was halted on Monday.

Kosmos was previously owned by Nasdaq-listed Mawson Infrastructure, which operates mining facilities in both the United States and Australia.

But the company decided to sell Cosmos after deciding it didn’t want to be in the “long game” of ETFs, said Mawson CEO James Manning. AFR.

Decrypt Contact Cosmos to request feedback.

Crypto ETFs Down

Cosmos worked with Canadian firm Purpose Investment and custody specialist Gemini Trust to create the funds. K2 Asset Management is the entity responsible for CBTC and CPET, while One Investment Group is responsible for DIGA.

Chief Executive Officer Dan Annan said in a statement that despite the delisting AFR That the company continues to believe “strongly” in the asset class.

Meanwhile, two competing funds launched by ETF specialist Graham Tockwell, which began trading on the same day with the Cosmo vehicle, continue.

But they were not immune to the downturn in the market.

At current prices, the Global X 21Shares Bitcoin ETF (EBTC) is down 18% from its initial public offering in May, while the Global X 21Shares Ethereum ETF (EETH) is down just 6.4%.

today, Bitcoin Hands trade around $20,000 and Ethereum Priced at $1,539.

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