Despite the improvement in the past few days, it seems that for crypto market There is no reprieve: the numbers still do not support the sector as they did in 2021. We constantly find ourselves with the birth of new companies aiming to grab a slice of the sector, but it does not seem to be as simple as before.
Many are born to die or disappear soon after, at an apparent rate Nothing short of frantic. The latest news from the market, and especially from the southernmost country in the world, Australia, seems to confirm this!
They are 3, in fact, the last of them ETFs launched in the Australian market Along 2022 who couldn’t even celebrate his “first birthday” has to be pulled over because unfavorable conditions from the sector.
Let’s see what they are and what happened to them.
What is an ETF?
When we decide to invest and create our own portfolio, diversification is one of the things we must learn as soon as possible.
over here Exchange Traded Funds It is one of those tools that help the investor reduce risk through diversification.
these Exchange Traded Funds They are, in fact, gods Funds operating in the stock exchange, generally by tracking a specific index. When you decide to buy shares in one of them, you are given a range of assets that you can buy and sell during market hours, which can reduce your exposure and help diversify your investments.
The supplier of these funds creates one based on a specific sector (for example cryptocurrencies) and sells shares to investors. This means that it works on a A “package” of actions that someone else has devised.
Although investors do not own the underlying assets, they can still receive dividend payments, reinvestment, and other benefits.
The hero of the unfortunate story? Kosmos Asset Management
What we are going to talk about is an Australian company that was born for very specific purposes in an unfortunately ‘lucky’ period.
Kosmos Asset Management It is an asset management company that manages a range of digital assets including Cryptocurrencies and index funds To provide innovative offers to investors.
The primary objective is to develop specialized public and private offerings and make them accessible to institutional and individual investors. In this way, Cosmos Asset Management aims to become the leading asset manager in the cryptocurrency and blockchain market in Australia.
What is the best solution than a ETFs to promote entry to Web3 Who are Australian citizens?
We see the ones launched by the company, even if they don’t go well at all.
Cosmos Purpose Bitcoin Access ETF
Unfortunately, the three funds launched by the company were not successful and will have to be taken off the market.
The first of these is The purpose of accessing bitcoinwhich is one of the first companies to be launched in May 2022. It has been offering to Australian investors exposure to bitcoin Via a managed investment scheme registered and listed on Cboe (currency code: CBTC).
The underlying asset is the Purpose Bitcoin ETF, which is managed by Purpose Investments and listed on the Toronto Stock Exchange.
For the first Bitcoin fund listing in Australia, Cosmos secured at least four market participants to support the 42% margin requirement needed to hedge risk, and $1 billion in inflows were expected!
Cosmos digital miners access ETF
The Australian company doesn’t stop there, but was the founder of another fund.
It comes with an extension Access to digital minerswhich did not have a long life in its own way quite like its predecessor based on Bitcoin!
This ETF is a managed investment scheme Registered with ASIC (The Australian Securities and Investments Commission).
This too, however It did not sustain the cryptocurrency downturn Owing to the fund’s rising costs (just like the previous fund), it is now close to pulling its listings on Cboe’s Australian, the aforementioned country’s market.
And another one? Cosmos Purpose Ethereum ETF
When the last bottom is reached, the story doesn’t change at all. Australian company Kosmos Asset Management Forces joined with Al-Kindi purpose investments to launch a Ethereum Exchange Traded Fund for Australian investors, but this (launched in May 2022) also looks close to Pull quotes Because of unfavorable market conditions!
In short, nothing to do even for an Ethereum-based ETF: the cryptocurrency market is still in the red Not incurring management costs.
Along with Bitcoin, Cosmos Purpose Ethereum was one of the first funds to launch on the Australian market this year.
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What does it mean to withdraw money from the market?
It seems that the cryptocurrency winter has long been at the center of the contentious fates of some cryptocurrency companies that have collapsed like never before.
there The story does not It’s a lot It differs from the 3 Cosmos ETFslisted on the Australian market and then withdrawn, showing that there are still no better recovery conditions for the cryptocurrency market, which is still causing Hard blows for investors.
What do you do in this context?
I wait for And study the data we have, and diversify it as much as possible and maintain aNever overexposure In a sector that doesn’t seem ready to return to its former glory.
Also Read: EU Green Deal: Stop Cryptocurrency Mining If Needed, The Environment Needs It