A number of new spot cryptocurrency ETFs are soon expected to list on Australian exchanges. This follows regulators in the US and Hong Kong giving the go ahead for these instruments to start trading in their markets for the first time earlier this year.
Regulators have been reluctant to approve cryptocurrency-based financial products for a number of reasons. For instance, the underlying assets are only loosely regulated and there is a number of ways to price them. This could lead to inconsistencies in net asset values, complicating fair value.
Two spot crypto ETFs already trade on the Cboe Australia exchange, the Global X 21Shares Bitcoin ETF and Global X 21Shares Ethereum ETF. Earlier spot crypto ETFs issued by Cosmos Asset Management were delisted in late 2022 after desultory investor interest.
Fast forward two years and Cboe Australia president Emma Quinn says there is interest from a number…