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Australia Set to Finally Launch Bitcoin ETF This Week

After an initial setback last month, Australia is set to release its crypto exchange-traded funds (ETFs). The set of ETFs formally slated to launch last month will be listed on the Cboe exchange this Thursday to track the performance of bitcoin and ether, the Australian arm of the exchange confirmed on Monday.

The products, dubbed the Cosmos Purpose Bitcoin Access ETF, ETFs 21Shares Bitcoin ETF, and ETFs 21Shares Ethereum ETF, are powered by fund managers Cosmos Asset Management and ETF Securities.

The ETF Securities crypto funds are created in collaboration with Swiss-based ETF issuer 21Shares to allow ETF Securities to run the products, while 21Shares will offer operational and research support.

The Initial Setback

The ETFs were supposed to be made available for trading on April 27 after receiving the nod from Australia’s central capital market regulator, ASX Clear. But, due to last hour issues, the listing had to be moved forward to May 12. 

According to emanating reports t the time, the delay was caused by a powerful prime broker who prevented the projects from launching on Cboe, attributing it to the volatility and uncertainty of the crypto market. 

As a result, to fast-track, the launch, Cboe and other relevant market makers had to secure another broker within the two-week delay as efforts to bring the former one back to the table proved futile. 

Moreover, the hold-up allowed the Canadian ETF issuer 3iQ Digital Asset Management step. On May 3, the Toronto-based company filed an official application to offer two crypto funds to Australian investors. If approved, the 3iQ products, dubbed BT3Q and ET3Q, will trade on Cboe while tracking the performance of bitcoin and ether.

Brazil’s Hashdex Launches the First DeFi ETFs

In the same vein, there has been a fierce battle between two companies to launch the first Brazilian DeFi exchange-traded funds. In the past few years, Hashdex and QR Capital leading the charge in increasing the popularity of ETFs in Brazil.

After much work, Hashdex, a crypto asset manager, announced a DeFi ETF on Brazil’s B3 stock exchange in January. The funds option was listed on the Brazilian stock exchange on February 17, 2022. 

A statement by Hashdex CEO Marcelo Sampaio at the time noted:

“We are confident that DeFi, through its innovative and disruptive technology, will exponentially grow and play a vital role in the financial sector of the future.” 

The CF DeFi Composite Index is “mirrored” by this ETF. It tracked 12 digital assets as of January, covering dApps, service protocols, and settlement networks. Similar index products exist inside DeFi, with the DeFi Pulse Index (DPI) being the biggest by market capitalization and including Uniswap, Aave, and Maker among its top three holdings.

Hashdex reported that the DeFi ETF has attracted 2,200 confirmed investors and raised $10.5 million in a recent release. However, according to Brazil’s InfoMoney financial publication, this figure represented merely 10% of the firm’s early predictions. Hashdex is in charge of over $1 billion in assets.

Meanwhile, as other nations such as Canada and Switzerland welcome their first crypto ETFs, the US continues to reject applications for physically-backed Bitcoin ETFs.