Cosmos Asset Management to Delist Crypto ETFs in Australia

Cosmos Asset Management to Delist Crypto ETFs in Australia

Cosmos Asset Management, a Sydney-based investment firm, has announced plans to delist its Purpose Bitcoin Access ETF (CBTC) and Purpose Ethereum Access ETF (CPET) from the Australian stock market. This decision follows a lack of investor interest in the funds since their launch.

The two ETFs, which were initially marketed as the first in Australia to provide direct cryptocurrency exposure, have combined assets of approximately A$1.1 million ($710,000). Despite their innovative approach, the funds struggled to gain traction with local investors.

Background and Reasons for Delisting

CEO and co-founder Christopher Burniske cited the lack of market enthusiasm as the primary reason for the delisting. He acknowledged the challenges publicly, stating, "We’ve had a lack of interest in our products ever since they’ve been on the market." Burniske also expressed gratitude to supporters, emphasizing the company’s transparency throughout the process.

The decision comes amid a public dispute between Burniske and Robert Cornish, CEO of Cboe Australia, which may have further complicated the situation.

Market Context and Global Trends

While Cosmos Asset Management’s ETFs are being delisted, other crypto funds like the Global X Bitcoin and Ether funds continue to operate in Australia, with a combined market value of around A$8.5 million. Globally, the majority of crypto exchange-traded product (ETP) assets—about 83%—are held in the U.S., with Europe accounting for 16%, according to Bloomberg Intelligence.

Meanwhile, Hong Kong has recently introduced regulatory updates to position itself as a hub for virtual assets in Asia, allowing futures-based crypto ETFs. This move reflects the evolving global landscape for cryptocurrency investments.

Cosmos Asset Management’s withdrawal highlights the challenges of gaining investor confidence in emerging asset classes, even as regulatory frameworks and market opportunities continue to develop worldwide.