Australian Crypto ETFs Fizzle on Debut, Only dollar2 Million in Volume
Categories: Crypto News US
This week’s long-awaited launch of the first Australian crypto ETFs went off not with a bang but with a fizzle, as the investment products were released amid some of the darkest days in the history of crypto.Since May 11 Australians have been able to invest directly in three Bitcoin and Ethereum exchange traded funds (ETFs) listed on Cboe Australia, through two providers.All three new crypto ETFs had trading volumes far below what was predicted, as the Terra blockchain collapse continued to wreak havoc across the entire crypto market, with Bitcoin plunging to levels not seen since 2020 and Ethereum falling to a six-month low. All Three ETFs Attract Little Interest On their first day of trade, none of the newly launched funds was able to crack A$1 million in trading volume:
The new funds launched during a full-blown crisis in crypto markets, the magnitude of which we haven’t seen for years, if ever. It makes sense that concerned investors would be less inclined to get into crypto under current conditions.The collapse of the Terra blockchain has sparked a US$450 billion drop in the overall crypto market cap since May 7, in a single week. According to CoinGecko, the price of Bitcoin has dropped by almost 25 percent in the past fortnight alone and now sits at US$29,531.
Another factor likely affecting demand is that investors can already easily access Bitcoin and Ethereum directly, simply by purchasing the assets from a crypto exchange.The race to launch the first crypto ETF in the Australia market was closely contested, with these three Australian-based crypto ETFs just beating out funds from Canadian challenger 3iQ Digital Asset Management.