Australia’s crypto spot ETFs have had extremely minimal trading volume since their launch in mid-May. The volume of 21Shares’ spot Bitcoin and Ethereum ETFs at the launch was just approximately $656,000 and $415,000, respectively. The third Australian Spot ETF, Cosmos Purpose Bitcoin Access ETF (CBTC) went live on May 31, with only 2,073 shares traded on its first day. According to the sources, the two crypto spot ETFs in Australia have been met with scepticism by investors since they began trading on the Cboe Australia market on May 12 and the same thing is happening with the third ETF.
According to the Bloomberg report on June 1, the three listed ETFs – Cosmos Purpose Bitcoin Access ETF (CBTC), ETFS 21Shares Bitcoin ETF (EBTC), and ETFS 21Shares Ethereum ETF (EETH)– have all seen sharp drops in trading volume as the crypto market’s extreme volatility has motivated investors to de-risk, avoiding speculative assets.
Notably, the majority of the floating shares of the mentioned products are not traded in the market, as investor opinion toward crypto-related stocks remains negative. The Australian Spot ETFs have been seen as a failure in terms of attracting investor interest since their inception.
According to Bloomberg Intelligence Senior ETF Analyst Eric Balchunas, the launches fell short of expectations in comparison to the first-day volume of Canada’s Bitcoin ETF, CI Galaxy Bitcoin ETF (BTCX). In addition to the market restrictions that stifle broader interest in crypto assets. Financial Review noted that the Australia’s largest equities capital market watchdog, ASX Clear, enforced “prohibitively high” margin limits. It may have prevented brokers from offering such products since it required participants to pay 42% of the value of each trade as collateral.
In April, 21Shares and its partner ETF Securities postponed the listings of Bitcoin and Ethereum ETFs owing to an unnamed third-party broker allegedly preventing the products from going live on the Cboe Australia platform.
, an Australian ETF launched on May 31 received lukewarm results due to rising crypto volatility.){kind=link}