Crypto Crisp: Three In A Row
In the past one and a half months, exchange-traded crypto funds have been launched in two countries. Hong Kong introduced both Bitcoin and Ethereum exchange-traded products in late April, followed by the UK doing the same last week. Tomorrow, Australia will launch its Bitcoin spot ETF, but like the recent launches in Hong Kong and the UK, we do not expect it to be a major success.
Although the launches of these exchange-traded crypto products have not been successful recently, the exchange balances of Bitcoin and Ethereum continue to decline, as shown in Chart 4.
In addition to tomorrow’s launch of an Australian-based Bitcoin ETF, we are closely monitoring news about Mt.Gox repayments or related transfers, as these events may trigger market fears.
In our view, we are likely to witness the third consecutive unsuccessful launch of exchange-traded crypto products within a month and a half. It is up to the upcoming Ethereum spot ETF to break this trend. Despite being a decade old, the Mt. Gox bankruptcy still haunts the industry.
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