Crypto ETF rollout in Australia delayed due to ‘third party broker’
- "Standard checks prior to the commencement of trading are still being completed," stated CBOE Australia.
- AFR report blames "prime" or "executing" broker who has yet to approve the products
Australia’s first cryptocurrency ETF (exchange-traded fund), 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.”
According to an AFR report, 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 AFR.
The Cosmos Asset Management and ETF Securities funds were due to begin trading at 10 a.m. local time on April 27.
CBOE Australia said in a statement Tuesday, "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 surpriseKanish Chugh, Head of Distribution at ETF Securities
According to a Financial Review report published Tuesday, the launch was delayed because of an undisclosed third-party broker, which blocked the products from going live on the CBOE Australia exchange.
"Cosmos AM has approval from the exchange to commence quoting and we’re working towards that goal," said a Cosmos spokesperson.