- The first Australian bitcoin spot ETF from Cosmos Asset Management has been delayed.
- The delay comes as a shock because the nationwide clearing home and company regulator had beforehand greenlit the product.
- AFR experiences that an unknown “prime” or “executing” dealer is behind the delay.
ETF Securities and 21 Shares have been set to launch Australia’s first bitcoin spot exchange-traded fund (ETF) on April 27, however the product’s itemizing has now been delayed.
An announcement from the Cboe Australian change explaining the delay got here as a shock since each the company regulator and nationwide clearing home, ASX Clear, had already given the inexperienced mild for the ETF’s launch.
“We are now at our minimum number of clearing participants and that means we are good to go,” stated Hamish Treleaven, the chief threat officer at ASX, at the time.
Cboe explains the delay as a matter of routine checks and balances.
“Standard checks prior to the commencement of trading are still being completed,” Cboe acknowledged in a Tuesday announcement.
However, a report by the Australian Financial Review blames the delay on “a powerful prime broker.”
The report from AFR states that whereas the Cboe was fast to place this choice as a part of a routine course of, “multiple market sources expressed frustration” that the five-month approval course of had as soon as once more been delayed for the speculated $1 billion influx anticipated upon approval.
AFR detailed {that a} “service provider downstream” prompted the delay, explaining that the entity is a “prime” or “executing” dealer. Whoever this service supplier is, its approval is wanted for the market maker – an appointed entity that units bid and ask costs for the ETF – to function a practical market.
A spokesperson for Cosmos Asset Management, one other issuer that will launch a bitcoin ETF on the identical day, reportedly acknowledged, “Cosmos AM has approval from the exchange to commence quoting and we’re working towards that goal.”
However, sources shut to Cosmos reportedly acknowledged they have been hopeful the technique of shopping for models from the prevailing Purpose Bitcoin ETF listed on the Toronto Stock Exchange, reasonably than precise bitcoin, is perhaps extra interesting to the prime dealer which might enable them to checklist earlier than its rivals.
Cboe stated it could present an replace within the coming days.
