Australia recently released its inaugural crypto ETF (exchange-traded funds) amid a crypto meltdown. Assets including ETFs 21Shares ETH ETF, Cosmos Purpose BTC Access ETF, and ETFs 21Shares BTC ETF entered the local exchange.
The portfolios will allow users to directly invest in digital coins. At the same time, Cosmos vehicle facilitates investments in the Purpose BTC ETF, a fund listed in Toronto with over 1.1 billion dollars in market value.
The integration comes when the crypto market is performing poorly, and its latest dip came after the unraveling of a popular stablecoin called TerraUSD. In addition, the global economy is witnessing financial tightening, which is also affecting the crypto space.
Stablecoins hold the utmost significance in moderating the crypto sector, as they allow traders to move funds between tokens. The recent de-pegging of TerraUSD caused it to fall below its stable value of 1 dollar, and it triggered a catastrophic wave of value fluctuation in the digital asset market.
Even Bitcoin, the biggest crypto, has fallen over 42% in 2022, and it was currently 50% below its peak in November 2021. Similarly, Ether has also dipped by over 51%, repelling many traders from investing.
Tony Sycamore, City Index’s Senior Market Analyst, talked about this trend. The analyst stated that the crypto market shows strong signs of capitulation, and rebounds often follow it. Assuming the recovery gains occur, the newly released ETFs will gain support, and it will certainly boost their adoption across the region.
Regardless of these assessments, the inaugural ETF release garnered over 1 million Australian dollars within two hours. Compared to the US’ 6.3 trillion dollar ETF market, Australia only supports a 152 billion dollar market. Thus, witnessing such numbers gives high hopes to the crypto market.
Nonetheless, the ongoing dip in the sector remains, as traders hope for such proceedings to bring a change.
Source: https://www.cryptonewsz.com/bitcoin-etfs-enter-australia-as-crypto-market-tanks/