Two digital asset exchange-traded fund (ETF) issuers in Australia are set to leave the market amid heightened regulator scrutiny and a deepened crypto winter, though some remain bullish about the market’s prospects.
In the last week, Australian crypto ETF providers including Holon Investments and Cosmos Asset Management have indicated they may be stepping back from the crypto ETF scene.
It comes after the Australian Securities and Investments Commission (ASIC) issued an interim stop order on Oct. 17 directed at Holon’s three funds due to non-compliant target market determinations (TMDs).
According to the report, sources stated that Cosmos failed to attract sufficient assets under management to remain viable.
It also had heavy overheads in crypto custody and professional indemnity insurance costs.
Global X Australia chief executive Evan Metcalf told the AFR that the firm continues to have a “strong conviction in digital assets and has no plans to close any crypto ETPs,” noting: “We are very bullish on the crypto markets in general, digital assets, and decentralized finance — we see enormous potential there.”
Source: Cointelegraph
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