Australian Crypto Market Tanks on the Arrival of Bitcoin and Ethereum EFTs
Australia’s digital currency exchanges began trading funds on Thursday amid a breakdown in the digital tokens. With the inauguration of this trading activity, ETFS 21Shares Ethereum ETFs, ETFs 21Shares Bitcoin ETF, and Cosmos asset management exchange debuted on a local cryptocurrency exchange called Cboe Global Markets Inc.
However, the ETF portfolios will be directly invested in crypto coins, while the Cosmos will be investing in the Purpose Bitcoin ETF, a Toronto-listed fund with digital assets worth $1.1 billion. Additionally, the funds are available publicly as the cryptocurrency ecosystem has experienced the significant success of a high-profile stablecoin called TerraUSD.
While due to the global movement of tightening financial regulations the market liquidity is also sapping. Whereas, stablecoins are the critical component in the cryptocurrency market, where the investors or traders hold their funds as they move their wealth in or out of other available virtual tokens. TerraUSD has a market value of $1 but the peg gas frayed casting a pall over the digital crypto money market for digital tokens.
Furthermore, the United States of America (USA) holds the maximum share of the cryptocurrency that is being listed publicly across the world. Whereas, Bitcoin's market capitalization was around 42%, while Ethereum gained 51% of the total shares. However, keeping the fact in mind, that the cryptocurrency market is volatile wild price swings are very common in the digital currency industry as the latest downfalls made it hard for the investors and traders to get their wealth to recover.
“There are strong signs of capitulation in crypto this week, which often proceeds rebounds,” said Tony Sycamore, senior market analyst for City Index. “Presuming the recovery gains traction, it will help garner support for the newly listed ETF products along with the continuation of more widespread adoption.”
In addition to this, the total cryptocurrency trading volume of Australia's inaugural cryptocurrency EFTs gained AU $1 million within two hours after going live. According to Bloomberg Intelligence analysts Rebecca Sin and James Seyffart, this trading activity was record-setting for the country’s EFTs market as its market capacity is only AU $152 billion as compared to the US $6.3 trillion markets.
“ETF Securities and Cosmos Asset Management’s cryptocurrency launch may go down in history books and put Australia’s ETF market in the running,” they wrote in a report. Additionally, according to the financial projections, it is expected that the Australian cryptocurrency industry will touch $1 trillion but by the end of 2022, the country may also become the prominent gateway to promote crypto EFTs in the Asia-Pacific side of the world.
Image source: Shutterstock