Bitcoin price sinks ahead of ETF launches

AUSTRALIA’S first listed cryptocurrency funds say they are full-steam ahead to hit the markets on Thursday despite billions of dollars being wiped from bitcoin’s valuation.

Bitcoin’s price has plunged more than 50 per cent from a November high, falling below $US30,000 ($43,400) for the first time in almost a year.

Australia’s first cryptocurrency exchange-traded funds say they are still ready to go public with their offerings, with both Cosmos and ETF Securities in a race to list on Cboe Australia (previously known as ChiX), giving investors access to crypto.

Cosmos chief executive Dan Annan said volatility was inherent to bitcoin, and that the current low prices might benefit investors keen to dip their toes into the asset class.

“This is a volatile asset class and it is always prudent for investors to understand where their exposure fits within their own asset class allocation,” Mr Annan said.

“The launch of the CosmosPurpose Bitcoin Access ETC on Cboe this Thursday will provide those investors who have a long-term view a good entry point into the market.”

Bitcoin slumped on Tuesday as low as $US29,944 – its lowest figure since July last year – while rival ethereum fell further. It has lost 17 per cent of its value since Thursday and has dropped in price by about a third this year alone.

The concern now for crypto investors is when the slide will end, according to Simon Peters, analyst for investment platform eToro. Markets were battling to decide where comfortable levels were in the wake of interest rate rises and the crypto market was caught in the middle, he said. Bitcoin’s correlation with other assets was climbing and it “has been a victim of its own success”.