- Two Bitcoin ETFs in Australia are set to launch this Thursday, May 12.
- The 21 Shares Bitcoin ETF will provide direct access to Bitcoin backed by BTC in cold storage.
- The Cosmos Purpose Bitcoin Access ETF allows investors to invest in shares of Purpose Investment’s North American-based spot bitcoin ETF.
Two Bitcoin exchange-traded funds (ETFs) are set to go live in Australia on Thursday after a delay delayed their previous launch date of April 27, according to announcements by the Cboe Australia Exchange.
The Cosmos Purpose Bitcoin Access ETF (Cboe:CBTC) is managed by Cosmos Asset Management Pty Ltd, while the 21 Shares Bitcoin ETF is managed in partnership with ETF Securities (Cboe:EBTC).
21 stocks and ETF securities provide direct investment opportunities for investors to interact with bitcoin. The 21-stock fund is backed by Bitcoin held in cold storage by Coinbase. In the original press release prepared for publication on April 27, 21 Shares said:
“Australian investors clearly want and deserve an affordable, easy and professional way to gain access to the growing crypto asset class and we look forward to continuing to build accessible bridges into the crypto world.”
Cosmos became the first Bitcoin ETF to be approved in Australia after meeting a 42% margin requirement from ASX Clear, a major Australian clearing house. Cosmos planned not to offer spot bitcoin, instead offering investors the opportunity to buy shares of Purpose Investment’s Toronto, Canada-listed bitcoin ETF, which at its initial release was worth over $80 million, which was raised within its first hour, and over $200 million broke records on the first day, 10 times the average ETF volume.
After getting the green light to release, both Cosmos and 21 Shares were shocked when Cboe Australia issued an announcement saying the delay was related to “standard audits”. However, the Australian Financial Report (AFR) reported that the blame fell on a “downstream service provider” that needed more time to support the products.
The company that halted the listing of the outstanding ETFs was reportedly a “prime” or “executing” broker whose approval was required for the market maker to ensure operations for the market.