In Australia, not one, but three crypto ETFs launched simultaneously last month. Unfortunately, the success of these has not been forthcoming. Bloomberg reports that all three ETFs saw trading volumes collapse since they became tradable.
Too little enthusiasm
In the US, investors would jump for joy if a Crypto Spot ETF were finally launched, but these are refused time and again by the US SEC. In Australia, they have succeeded, but there is not enough enthusiasm for them. Trading volume has only declined since the launch.
As can be seen in the chart above, the trading volume – since the launch on 12 May – has dropped considerably. These are the following three ETFs, two of which are spot and two futures:
- A spot bitcoin ETF from 21Shares
- One spot Ethereum ETF from 21Shares
- A bitcoin futures ETF from Cosmos Asset Management
Launch was low in 2022
As we mentioned in previous articles on these ETFs, it was to be expected that interest would be minimal. After all, Australia has no more than one and a half times the population of the Netherlands.
This is also a reason why the price did not really react after this “big” news. The price of bitcoin actually dropped 12% on this day, bringing bitcoin to a low of 2022. At one point, the price had even fallen to $25,400 (about 24,200 euros), but then managed to recover. The candle of 12 May finally closed at -0.36%.
Was it better not to delay?
The launch of these ETFs was actually supposed to happen half a month earlier, but it was postponed. The original launch of the three crypto ETFs was scheduled for Tuesday, April 26, but – like many US ETFs – they were postponed first. The main reason for this was “standard checks”.
It is highly unlikely, but not certain, that the launch of the ETFs caused bitcoin’s decline. Australia is not that big, but the fact remains that the 2022 low occurred at the same time as these ETFs went live.
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Steven Gray is an experienced cryptocurrency and blockchain journalist with over 7 years of reporting on the crypto industry across major publications. His proficiency in technical analysis provides him the skills to evaluate complex trading algorithms and AI systems. Steven leverages his extensive network of academics and finance professionals to incorporate expert opinions into his unbiased analyses.
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