Spot Bitcoin ETFs have caused an unprecedented stir in the crypto industry. Following the lead of the United States and Hong Kong, Australia is now preparing to launch a series of Bitcoin exchange-traded funds.
ASX has received applications from at least two organizations, with another in the pipeline
Australia wary of Bitcoin ETFs
The ASX, which controls about 80% of the country's stock trading, plans to approve the first spot Bitcoin ETF for its main board by the end of 2024, according to a recent report from Bloomberg.
These filings follow the success of the US Bitcoin ETF, which raised $53 billion this year. Despite the outflow from Grayscale, products from BlackRock and Fidelity Investments remain at the top of the charts.
A fund that invests directly in Bitcoin and Ether will also begin trading in Hong Kong from April 30th. The issuer is looking to capitalize on the cryptocurrency's massive rally that pushed Bitcoin to an all-time high of nearly $74,000 last month.
Sydney-based BetaShares is actively working on launching products on the ASX. Justin Alzadon, head of digital assets at BetaShares, said the recent influx of cryptocurrencies in the U.S. is a sign of growing acceptance and longevity for the asset class. The company has even reserved ASX tickers for the Spot Bitcoin ETF and Spot Ether ETF, showing confidence in the market.
Although the ASX has not confirmed a specific timeline, it is in discussions with a range of issuers interested in introducing crypto-based ETFs.
Demand for spot ETFs
Additionally, Australia's $2.3 trillion pension market is a major driver of these inflows, particularly as around a quarter of retirement assets are contained in self-managed superannuation programs that allow individuals to control their investments. It is also important to note that there is a possibility that
VanEck, which offers similar ETFs in the US and Europe, resubmitted its application in February. Jamie Hanna, VanEck Australia's deputy head of investments and capital markets, said these programs would be buyers of spot crypto funds. suggests that it is possible. With a combination of self-managed super funds, brokers, financial advisors and platform money, these ETFs have significant market growth potential.
These recent filings mark the second wave of spot Bitcoin ETF launches in Australia, following the initial listing on CBOE Australia two years ago. While some ETFs, such as the one launched in 2022 by Sydney-based Cosmos Asset Management, have not seen significant inflows and have since been delisted, the GlobalX 21Shares Bitcoin ETF There are some ETFs that have succeeded in accumulating noteworthy assets.
Monochrome Asset Management, led by former Binance Australia CEO Jeff Yu, has also applied to CBOE Australia to launch a spot Bitcoin ETF.
BetaShares has prioritized ASX for listing as the management of the tokens is highly monitored. Meanwhile, he said that another player, DigitalX Ltd., filed an application in the first half of February. The company's CEO Lisa Wade believes Australians are aware of its potential as a financial infrastructure and can allocate up to 10% of their portfolios to cryptocurrencies.
