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Australian crypto ETFs to be delisted

2 minute read

The crypto ETFs were among the first to be made available in Australia.

Cosmos Asset Management is withdrawing its crypto-based ETFs from the Cboe exchange in Australia after the funds struggled to gain traction with local investors.

The Cosmos Purpose Bitcoin Access ETF (CBTC) and the Cosmos Purpose Ethereum Access ETF (CPET) both originally launched on the exchange in May this year.

However, the responsible entity of both funds, K2 Asset Management, confirmed on Thursday that it has now applied to Cboe for a revocation of the funds’ quotation and said that Cosmos “is no longer in a position to act as the investment manager of the funds”.

“The responsible entity has received in-principle advice from Cboe that it will agree to the request and, it is expected that the revocation will be effective from the close of trading on Tuesday, 8 November 2022,” K2 Asset Management said.

“Subject to Cboe’s formal decision on the application, the responsible entity will commence the process on 9 November 2022 to redeem all investors at NAV as calculated by the funds’ administrator and return their capital as soon as possible.”

K2 Asset Management noted that the closure costs will be covered by Cosmos.

“While we strongly believe in the asset class, we are all disappointed with this result. However, we will continue to follow the process in the best interest of all unit holders,” said Cosmos Asset Management CEO Dan Annan.

“The ETFs are ring fenced by Independent External Service Providers, which is a key transparent risk mitigation structure across all asset classes.”

One Management Investment Funds, the responsible entity of the Cosmos Global Digital Miners Access ETF (DIGA) which launched in October last year, has also confirmed that it will apply to Cboe for a revocation of the fund’s quotation. 

CBTC had around $890,000 in assets under management as of October, according to a filing with Cboe, while CPET had around $271,000, and DIGA around $700,000.

The BetaShares Australian ETF Review for September showed that Cosmos accounted for only a 0.01 per cent share of ETF issuer inflows year-to-date at $1.8 million.