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Global X ETFs maintains ‘strong conviction’ in digital assets despite crypto crash

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The ETF provider formerly known as ETF Securities has no plans to withdraw its crypto-based exchange traded products from the market.

Global X ETFs has confirmed that it intends to continue offering its crypto-based ETFs in Australia despite the recent crypto crash and the exit of other providers from the market.

In a statement, Global X ETFs Australia CEO Evan Metcalf said that the firm has “strong conviction” in digital assets with no plans to close any of the crypto exchange traded products it currently offers.

“On the contrary, Global X plans to launch additional digital assets products in markets around the world. We will have more information about our future product plans in due course and we continue to believe in the long-term investment case for digital assets,” he said.

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Mr Metcalf noted that the firm will soon become the only provider to offer Ethereum and Bitcoin-backed ETF products in Australia.

The 3iQ CoinShares Ether Feeder ETF and the 3iQ CoinShares Bitcoin Feeder ETF are set to be removed from quotation on Cboe Australia next month after only launching in June this year.

Meanwhile, the Cosmos Purpose Bitcoin Access ETF and the Cosmos Purpose Ethereum Access ETF, which both launched in May, have already been revoked from quotation, with the Cosmos Global Digital Miners Access ETF also set to exit later this month.

Flows into the Global X 21Shares Ethereum ETF (EETH) and the Global X 21Shares Bitcoin ETF (EBTC) have been slow to date, according to Mr Metcalf, which he said is largely because investors are not yet comfortable with cryptocurrency as an asset class.

“The removal of cryptocurrency ETFs from Australia exchanges and the collapse of crypto exchange FTX, may make some local investors wary of the space,” he added.

“We also acknowledge prices of major cryptocurrencies such as Ether and Bitcoin are down this year-to-date. However, we believe investors need to take a longer-term view on the potential of crypto and blockchain technology.”

The collapse of FTX recently sent shockwaves through crypto markets and saw the price of Bitcoin fall below US$16,000 for the first time since November 2020.

“When the markets recover from recent events — including the FTX collapse — we anticipate flows into cryptocurrencies and related ETFs such as EETH and EBTC will rise accordingly,” Mr Metcalf concluded.

Global X ETFs maintains ‘strong conviction’ in digital assets despite crypto crash

The ETF provider formerly known as ETF Securities has no plans to withdraw its crypto-based exchange traded products from the market.

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Jon Bragg

Jon Bragg

Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.

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