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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.
Updated May 11, 2023, 4:22 p.m. Published May 12, 2022, 8:36 a.m.
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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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Banking giant Intesa Sanapolo discloses $100 million bitcoin ETF holdings, along with Strategy hedge
The bank also holds a large put option position on Strategy, potentially capitalizing on the company trading above the value of its BTC holdings.
What to know:
- Intesa Sanpaolo disclosed $96 million in bitcoin ETF holdings, including ARK 21Shares Bitcoin ETF and iShares Bitcoin Trust.
- The bank also holds a large put option position on Strategy, potentially capitalizing on the company trading above the value of its BTC holdings.
- The filing used the Share-Defined designation, which suggests the investment decisions were made jointly by Intesa Sanpaolo and executed by affiliates.
