- Due to some factors like the bear market, crypto winter, and tight regulatory inspection, two digital asset exchange-traded fund issuers in Australia are going to leave the market.
- Still, some are very confident about the market.
The Australian crypto ETF providers who are going to leave the market are Holon Investments and Cosmos Asset Management.
The Australian Financial Review has reported that in line with Holon, it may shut its three retail crypto funds after the strict attitude from the financial regulator. The regulator accused the fund that the risk to investors in the target market determination filings was not explained.
The report also highlights that Holon has kept his point, clarifying that the crypto funds were made to be a part of a mixed portfolio, not a major portion of an investment strategy. However, it may have been ignored. On October 17, the Securities and Investment Commission of Australia issued a stopgap order for the three funds because of declinatory target market determinations.
Cosmos announcement
Cosmos has also announced that it will exclude its crypto ETFs from the Cboe Australia exchange. In the report, it was mentioned that according to sources, Cosmos didn’t stand at the parameter to influence enough assets under management to be feasible. Also, it had hefty expenses in crypto custody and professional indemnity insurance costs.
As per the public disclosures in September, Cosmos had almost $1.6 million in AUM for its BTC and ETH funds jointly.
Despite all these, some crypto ETF providers are still bullish about the market. Swyftx has made a survey in which it is anticipated that there will be almost one million new crypto adopters in the coming one year.
The ETF market in Australia includes providers such as 3iQ Digital Asset Management, Monochrome Asset Management, and Global X Australia which is well known as ETF Securities.
Evan Metcalf, the chief executive officer of Global X Australia revealed to AFR that the company has a strong belief in digital assets and is also not planning to shut the crypto ETPs.
“We are very confident in line with the crypto markets in terms of general, digital assets and decentralized finance as we see immense potential there.”
The executive did however highlight that the funds had faced a “relatively quiet” acceptance from investors at the time of market downfall, as there was a reluctance from local stockbrokers to give access to its funds to the clients.
Source: https://www.thecoinrepublic.com/2022/11/08/two-aussie-crypto-providers-all-set-to-leave-the-market/