April 27, 2022
By Murtuza Merchant
Australia’s first cryptocurrency exchange-traded fund (ETF), which seeks to provide Australians with access to the world of crypto through exchange-traded products, has been postponed, reportedly due to a “third party broker.”
The delay is caused to due a “prime” or “executing” broker who has yet to approve the products due to a delay in appointing a market maker for the product’s launch, according to the Australian Financial Review (AFR).
The Cosmos Asset Management and ETF Securities funds were due to begin trading at 10 a.m. local time on April 27.
Chicago Board of Options Australia said in a statement Tuesday that “Standard checks prior to the commencement of trading are still being completed.” The exchange added that updates will be revealed in the “coming days.”
Confirming the delay, Head of Distribution at ETF Securities Kanish Chugh said it was neither his company’s fault nor of the exchange. “As crypto ETFs are completely new to Australia and the infrastructure is being built from the ground up, a service provider downstream needs more time to support the launch. The issue affects all fund managers equally and has caught everyone by surprise,” Chugh said.
The launch was delayed because of an undisclosed third-party broker, which blocked the products from going live on the CBOE Australia exchange, the AFR said.
“Cosmos AM has approval from the exchange to commence quoting and we’re working towards that goal,” said a Cosmos spokesperson.