Two funds green-lit for trading in the country
Two of the funds that were just received green lights for trading in the country have been approved by regulators.
It is clear that the companies behind the Cosmos Purpose Ethereum Access ETF, Cosmos Purpose Bitcoin Access ETF, and Cosmos Global Digital Miners Access ETF no longer have faith in Cboe Australia as a platform for their products. This is likely due to the lack of activity and interest in the exchange in recent months. This is a shame, as Cboe Australia was once a leading exchange for digital assets. However, it seems that the companies behind these ETFs have decided to move on to other platforms that may better suit their needs.
While the decision to revoke the quotes may reflect the crypto winter's impact on demand for crypto assets, it does not necessarily mean that the management teams believe that the space has no future. Each of the three funds still has a net asset value of over $1 million, which suggests that there is still some belief in the potential of the crypto space.
As Bitcoin and Ether prices continue to fluctuate, investors are understandably on edge. So when trading of Cosmos' Bitcoin and Ether exchange-traded funds (ETFs) was halted on Oct. 31, it came as no surprise. One Managed Investment Funds Limited had also requested a trading halt for its digital miners ETF. With the future of cryptocurrency still very much up in the air, it's important for investors to tread carefully.
It is clear that the demand for Bitcoin ETFs is on the rise, with two more receiving regulatory approval to trade in the country in May. This is a positive development for the cryptocurrency industry, as it will provide more opportunities for investors to get involved in the market. With the first Bitcoin ETF listing in Australia already attracting four market participants, it is likely that we will see even more interest in these products in the future. This could lead to inflows of up to $1 billion for the class of assets, which would be a major boost for the industry.
CryptoCompare's report paints a bleak picture for the institutional trading of cryptocurrencies. In October, the average daily trading volume for institutional investors fell 34.1% to just $61.3 million. This represents a significant drop from the previous month, and is indicative of a continued trend of waning interest from institutional investors. While the report covers a number of different products, the average daily volume for almost all of them decreased in October, by anywhere from 24.3% to 77.5%.
This paragraph paints a picture of the average weekly net flows for October's Bitcoin-based products. Based on the information provided, it seems that short Bitcoin-based products saw the largest outflows. This is likely due to the market conditions at the time.
The recent downturn in Bitcoin prices has had an impact on other crypto exchange-traded funds. In October, the Valkyrie Funds announced its plans to close the Valkyrie Balance Sheet Opportunities ETF, a crypto investment product offering indirect exposure to BTC. This is just one example of how the current market conditions are impacting the crypto ETF space.
The decision to delist the fund from the Nasdaq Exchange was part of an ongoing review of products by Valkyrie, a firm that aims to “best meet client demand.” The remaining investors in the fund received a cash distribution equal to the net asset value of the held shares.
