An Australian fund company is going to delist Global X Bitcoin ETP (BT0X) and Global X Ethereum ETP (ET0X), the first exchange-traded products (ETPs) of Global X ETFs following a 12-month digital assets slump.
Cosmos Asset Management, asset manager of Cosmos Purpose Bitcoin Access ETF, Cosmos Global Digital Miners Access ETF, and Cosmos Purpose Ethereum Access ETF, rushed to revoke their quotations in the exchange managed by Cboe Australia Pty.
In an email to Bloomberg, Cosmos CEO Dan Annan said, "we will continue to follow the process in the best interest of all unit holders."
At least $620 billion of assets are managed by Cosmos, a member of Mirae Asset Financial Group.
The firm, a member of the Mirae Asset Financial Group, has over $620 billion in global assets.
Despite the misfortune, both Global X Bitcoin and Ether funds will remain in the Australian market. Their market value is estimated at A$8.5 million.
Global X ETFs Roll Out
Global X ETFs rolled out in March Global X Bitcoin ETP(BTOX) and Global X Ethereum ETP (ETOX) as exchange-traded products that are supported by cryptos.
The company said both products would offer customers the opportunity to access bitcoin and Ethereum efficiently.
Both products are on the list of Deutsche Borse Xetra. They have an arranger fee of 0.65 percent and are added to the initial range of products, which include the Global X Blockchain Ucits ETF.
Coinbase Custody International acted as the custodian of both products.
Australia's Hope to Become Crypto Hub Dims
Taking both products off the list of ETPs in Australia could diminish Australia's hope to become a crypto hub in Asia.
This hope of Oceania's largest country has been eroded with Hong Kong opening its door to both bitcoin and ether exchange-traded funds (ETFs), Bloomberg Intelligence ETF analyst Rebecca Sin.
An official of Hong Kong's Securities and Futures Commission (SFC) on Monday, Oct. 31, said the regulator is pursuing the establishment of a mechanism that will allow digital asset-based ETFs to go public and trade in the region.
Ningwei Qin, a research associate at Forkast, summarized at least seven facts, namely:
- An order revealing more details about the plan, said SFC's deputy chief executive officer, Julia Leung.
- Leung said the regulator had been actively pursuing setting up a mechanism to authorize ETFs which provide exposure to conventional digital assets with appropriate safeguards for investors.
- In addition to crypto futures-based ETFs, Leung discussed the SFC's regulatory oversight on tokenized securities. SFC will also consider if it will allow retail investors to enter the market.
- ETFs are a form of pooled securities tracking particular assets. These assets include a basket of stocks or bonds to cover an industrial sector, a commodity, or investments.
- Initially, SFC will confine ETFs' fundamentals to Bitcoin futures and Ether futures to be traded on the Chicago Mercantile Exchange.
- Hong Kong's flagship crypto event Fintech Week 2022, on Monday, Oct. 31, was considered the crucible for Hong Kong to become a crypto hub.
The overhaul of Hong Kong's policy about futures-based ETFs was an indicator it is looking at becoming a crypto hub in Asia.
