Seems like it’s all bad news for cryptocurrency at the moment…
Terra ETPs go to zero
The not-so-stablecoin Terra has collapsed, sending ETFs that tracked its native token LUNA to zero. The three ETFs were:
- 21Shares Terra ETP (LUNA)
- VanEck Terra ETN (VLNA)
- Valour Terra ETP (LUNA)
Creation-redemption and trading has been suspended in all of them. The funds have returned -99.99% since inception. There are currently just a few dollars AUM in each. The 21Shares and VanEck ETPs both traded on SIX. Valour’s ETP traded on the Nordics Growth Market.
We’re waiting to hear from the issuers how fund closures will be managed, presuming they do in fact close.
Meanwhile, a hunt has begun for the trading groups that caused the collapse of Terra. The initial suspects were Gemini, BlackRock and Citadel. However the three denied playing any role in it.
Australian crypto ETFs barely trade
Australia’s much anticipated bitcoin and ethereum ETFs made their debut last week. They were the first of their kind in Asia.
- ETFS 21Shares Bitcoin ETF (EBTC)
- ETFS 21Shares Ethereum ETF (EETH)
- Cosmos Purpose Bitcoin Access ETF (CBTC)
However Australians virtually turned their backs on them, with the three collectively seeing only $1.5 million in daily trading volume—making them some of the least-traded ETFs in the country on the day.
The low interest was blamed on the lack of broker and platform access. High capital requirements set by ASX Clear, the nation’s clearinghouse, meant many brokers and platforms could not support trading of them. While the LUNA implosion, which occurred the day before the launches, presumably didn’t help either.