Delay in Launch of Australia’s First Bitcoin and Ether ETFs: What You Need to Know

Delayed Launch: The Basics

Australia was gearing up to roll out its first Bitcoin (BTC) and Ether (ETH) exchange-traded funds (ETFs), but it seems that excitement has hit a little snag. Scheduled for launch on Wednesday, the much-anticipated ETFs faced delays due to additional ‘checks’ that need to be completed. Cboe Australia, the exchange behind the Bitcoin Spot ETF from Cosmos Asset Management, took a moment late Tuesday to inform everyone that these ‘standard checks’ are still in the works and promised a further update soon.

What’s Causing the Delay?

The uncertainty stems from two ETFs offered by 21Shares, alongside the Cosmos fund. Both firms reported that a service provider, one of those essential behind-the-scenes players, needed more time for preparations. While the details on which provider are being kept under wraps, it’s suspected that a heavyweight such as a prime broker is ensuring everything is up to par before they proceed.

The Industry’s Reaction

Feedback from the Australian financial community has been mixed with a touch of humor. Toby Chapple from Zerocap shrugged off the delay, joking about brokers wanting to have their ‘ducks lined up.’ Referring to the Cosmos Bitcoin ETF, he implied that managing an ETF that is merely investing in another ETF ought to be a straightforward task. However, the reality is often more complicated than it appears.

A Minor Bump in the Road

Cici Lu from Apollo Capital described the situation as a small speed bump, suggesting there’s little need for panic. As the traditional financial sector grapples with adjusting to crypto, moments like these are simply part of the learning curve. “It’s a journey both crypto and traditional finance are on together,” she remarked, likely rolling her eyes at the irony of it all.

What’s Next for the Cosmos and 21Shares ETFs?

The Cosmos Purpose Bitcoin Access ETF had exciting expectations set, with an anticipated $1 billion in assets post-launch. Overseeing bodies like the Australian Securities Exchange (ASX) provided their rubber stamp for trading back in April, but the clock continues to tick on that launch. Meanwhile, the 21Shares products, which are backed by Bitcoin and Ether securely tucked away in Coinbase’s cold storage, remain on the sidelines, waiting for resolution.

This isn’t the first hiccup for 21Shares either; earlier this year, the U.S. SEC rejected their Bitcoin ETF proposal for failing to meet necessary criteria. Clearly, the road toward integrating cryptocurrency into established finance is filled with twists, turns, and more than a few potholes!