The ongoing crypto market downturn continues to take a toll on different products related to the sector. Notably, after resulting in the collapse of several crypto companies, the bear market is now affecting investment products.
In particular, Australian Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETF) are in line for delisting, casting a gloomy future for the country’s crypto status, Bloomberg reported on November 2.
Notably, the management of the Cosmos Purpose Bitcoin Access ETF, Cosmos Purpose Ethereum Access ETF, and Cosmos Global Digital Miners Access ETF has since applied to withdraw their quotations for the products.
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The ETFs are listed on the CBOE Australia Pty exchange with Cosmos, noting that the trading will remain halted pending the final decision of the application.
Reduced investor interest
It is worth noting that Cosmos Asset Management was among the top entities to roll out the first crypto ETFs in Australia. However, the depressed markets have deemed investor interest in the product.
“While we strongly believe in the asset class, we are all disappointed with this result, however, we will continue to follow the process in the best interest of all unit holders,” said Dan Annan, chief executive at Cosmos.
It is worth noting that the Cosmos Bitcoin and Ethereum funds feed into Toronto-listed funds run by Purpose Investments, with the total assets standing at around A$1.1 million ($710,000).
At the same time, the Global X Bitcoin and Ether funds are still operating in Australia with a cumulative market value of about A$8.5 million ($5.4 million).
Australia’s crypto status in limbo
According to experts, the Australian quest as a crypto hub is diminishing amid increased competition from regions like Hong Kong.
“Australia’s hope of becoming Asia’s crypto hub now diminishes, especially after Hong Kong just announced a pathway for Bitcoin and Ether ETFs,” said Rebecca Sin, an ETF analyst at Bloomberg Intelligence.
As reported by Finbold, Hong Kong regulators announced they would be allowing the rollout of crypto ETFs in the region. Authorities noted that perennial risks associated with the sector have dropped.
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