The cryptocurrency winter continues with its cohort of bad news that never stops singing a year 2022 two months into its end. Whether it is products or personnel, the main trend is rather to cut or reduce to save furniture or stop damage.
Bad timing for Australian cryptocurrency ETFs
Three cryptocurrency ETFs will soon no longer be part of the Australian stock market landscape. In fact, the companies that issue theCosmos ETFs Purpose Access to Ethereumfrom Cosmos Purpose Bitcoin Access ETF and of Cosmos Global Digital Miners Access the ETF have asked to have their ads on Cboe Australia removed. A decision that would be directly linked to the prolonged cooling of the cryptocurrency market, and not to the loss of confidence in the future of Bitcoin and its offshoots..
While we firmly believe in the asset class, we are all disappointed with this result, however we will continue to follow the process in the best interest of all unitholders.
Dan Annan, CEO of Cosmos, quoted in Bloomberg
Introduced in the worst period of the market cycle, last May and June, or October 2021 for the mining ETF, local players at the time were expecting inflows of up to $ 1 billion, as clarified by The Block. Hopes are quickly dashed the three Cosmos funds that will soon be delisted each have a net asset value of less than USD 700,000.
These radiations are not the first. Thus, in the United States, the Valkyrie Balance Sheet Opportunities ETFan investment product offering indirect exposure to BTC, was canceled from the Nasdaq stock exchange on October 31 at the request of its issuer.
More generally, all institutional crypto products suffer the rigors of winter, such as the first Bitcoin ETF launched on the US marketwhich has lost much of its luster since its sizzling debut.
Workforce reductions in progress
At the same time, the list of cryptocurrency companies that are still licensing or renewing their license continues to grow. So BitMEX, the crypto derivatives trading platform, which had already laid off 75 employees earlier this year, is again shrinking its workforce., 30% according to the figure first announced and then contested. This news comes following the announcement of CEO Alexander Hoeptner’s departure last week. An event that is becoming common again in the cryptosphere where number of high-profile officials recently left office.
Willingly or by force, as could have been the case with Mike Novogratz, boss of Digital galaxy, the institutional cryptographic services company. The company has yet to make an announcement, but is considering to a reduction in its workforce of the order 15 to 20% of positions. Obviously the bear market is in question, but above all Galaxy Digital’s overexposure to the Terra Luna ecosystem of which Novogratz was one of its largest investors. After the collapse in May, the company closed the 2nd quarter record losses of $ 554 million. Q3 results released on November 9 will undoubtedly seal the fate of a number of employees.
bear market? Certainly. Who is meant to last? More likely. The best time to buy? No doubt. So don’t wait any longer to get started and register on the Bytbit exchange (trade link) without delay.