Australian ETFs come into operation in the context of another cryptocurrency crash

Australian ETFs Kick Off In Context Of Another Cryptocurrency Slump - Ethereum Is Toppling BitcoinExchange-traded funds (ETFs) on cryptocurrencies made headlines this week as interest in cryptocurrency-related products grows. This week, bitcoin and ether investment products hit the Australian market.

The rise in cryptocurrency-related products comes despite increased regulatory scrutiny and uncertainty stemming from the ongoing lawsuit between the SEC and Ripple, which could have a significant impact on the cryptocurrency market.

Regulatory scrutiny intensified this week due to the cryptocurrency market crash due to TerraUSD (UST) de-pegging from the dollar.

On Wednesday, the total cryptocurrency market cap fell by $ 149 billion. The slide left the market total down $ 249 billion for the current week.

Despite the anguish of the cryptocurrency market, the products continue to function.

Australian exchange-traded funds start trading after a short delay

Three exchange-traded cryptocurrency funds went into operation this morning.

Cosmos Asset Management launched the Cosmos-Purpose Bitcoin Access ETF, while ETF Securities launched the 21Shares Bitcoin and 21Shares Ethereum ETF funds.

The three ETFs will track the performance of bitcoin (BTC) and ether (ETH).

Cosmos-Purpose Bitcoin Access ETF (CBTC): Provides an investment return (gross of fees, costs and taxes) that approximates the performance of the USD-denominated shares of the Purpose Bitcoin ETF, not hedged by currency.

The Purpose Bitcoin ETF is listed on the Toronto Stock Exchange (TSX) and offers investors the opportunity for long-term capital appreciation through long-term holding of Bitcoin.

Cosmos Asset Management partnered with Cboe to launch CBTC.

ETFS 21Shares Bitcoin ETF (EBTC): EBTC tracks the performance of the price of Bitcoin in Australian dollars before fees and expenses. EBTC's benchmark is the "CryptoCompare's Crypto Coin Comparison Aggregated Index (Bitcoin)".

ETFS 21Shares Ethereum ETF (EETH): EETH tracks the performance of the price of ether, the native currency of the Ethereum blockchain, in Australian dollars before fees and expenses. EETH's benchmark is the “CryptoCompare's Crypto Coin Comparison Aggregated Index (Ethereum)”.

ETF Securities partnered with 21Shares to bring the two products to market.

The launch follows the launch of several cryptocurrency-related products in 2022. In April Fidelity Investments launched an ETF on digital assets and Web3, while in March ProShares launched its metaverse-focused ProShares Vers ETF.

For investors targeting new Australian cryptocurrency products, it has been a tough week for the cryptocurrency market.

The cryptocurrency market takes another day of losses on launch day

Bitcoin fell 6,44% on Wednesday. Reversing the 3,11% gain from Tuesday, bitcoin ended the day with a quotation of 29.017 dollars.

At the time of writing, bitcoin is down 1,17% to $ 28.677.

Eether slid 11,27% and ended Wednesday at $ 2.078. On Tuesday, the ether found a brief respite, climbing 4,98% before resuming its descent.

This morning, ether fell 3,05% to $ 2.014, with resistance at $ 2.000 proving crucial.

Both are facing a possible third daily loss over four sessions, after seeing current year lows this week.

Interest in the Aussie launch is likely to be high. However, investors could stay on the sidelines until bitcoin and ether show signs of easing.