Australian Crypto ETF Listings Kick Off With Low Volumes Amid Crypto Correction

Investors opted for a cautious approach during intense volatility on the opening day of three crypto funds.

May 12, 2022 at 8:36 a.m. UTC
Updated May 12, 2022 at 3:33 p.m. UTC

Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.

Three crypto exchange-traded funds (ETF) opened to investors in Australia on Thursday, with a slow start being attributed to an 18-month low for bitcoin (BTC).

  • The Cosmos Asset Management ETF, which invests in bitcoin through the Canadian Purpose Bitcoin ETF, saw $250,000 in trading volume across the first hour before hitting $400,000 by 1 p.m. in Sydney.
  • The ETFS 21Shares Bitcoin ETF experienced similar volumes, while the ETFS 21Shares Ethereum [ETH] ETF had around $150,000 in the first hour of trading.
  • The volumes were well below the expected $1 billion inflow of capital into these ETFs, according to a report by AFR. Bitcoin dropped to levels not seen since 2020 on Thursday, and the total crypto market cap lost 16% overnight.
  • ETF Securities head of distribution Kanish Chugh said that trading had been "relatively muted."
  • "The extreme volatility in crypto has caused some investors interested in crypto to sit on the sidelines and wait for calm. This is a challenging market for a crypto ETF launch," Chugh added.
  • In a bid to incentivize volume and appeal to market makers, Cosmos waived fees for the first two months.
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Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.

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Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.

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