Australia is set to introduce Bitcoin spot exchange-traded funds (ETFs) on its main stock exchange by the end of 2024, following in the footsteps of the US and Hong Kong. Key players like Van Eck Associates Corp. and BetaShares Holdings Pty are gearing up for these launches, with ASX Ltd., which handles around 80% of the country’s equity trading, anticipated to give the go-ahead before 2025.
Australia is on the brink of introducing a number of Bitcoin exchange-traded funds (ETFs) for spot trading on its primary stock exchange by the close of 2024. This development follows similar moves in the US and Hong Kong markets. Major financial institutions such as Van Eck Associates Corp. and BetaShares Holdings Pty are readying themselves for these upcoming launches, with the Australian Securities Exchange (ASX) anticipated to grant approvals imminently.
As a researcher, I’ve come across some intriguing information regarding ASX Ltd., Australia’s leading equity trading platform, which handles around 80% of the country’s equity trades. Based on confidential sources, it is predicted that ASX will approve the launch of the first Bitcoin spot Exchange-Traded Funds (ETFs) prior to 2025. This announcement follows a global surge in interest for cryptocurrency ETFs, fueled by substantial investments in US-based funds from industry giants such as BlackRock and Fidelity Investments.
“Justin Arzadon, head of digital assets at BetaShares, expressed that the increasing inflows into the US digital asset market serve as evidence of digital assets’ enduring presence,” is one way to paraphrase the original statement. Additionally, “BetaShares has set aside ASX tickers in readiness for upcoming listings of spot-Bitcoin and spot-Ether ETFs, indicating their firm commitment to launching these products soon.”
A representative from the ASX announced that the exchange is actively working with numerous companies wanting to introduce Bitcoin ETFs, but no specific date has been revealed yet for regulatory approval.
Bitcoin’s Potential Impact On Australia’s Pension Market
As a financial analyst, I can tell you that the introduction of spot-Bitcoin Exchange Traded Funds (ETFs) could significantly impact Australia’s $2.3 trillion pension market. Around one quarter of this vast sum is managed through self-managed superannuation programs, which enable individuals to select their investments. These popular schemes are identified as potential major buyers for the new spot-crypto funds.
“Jamie Hannah, the deputy head of investments and capital markets at VanEck Australia, commented that self-managed super funds, brokers, financial advisors, and platform users collectively form a significant market, which can accommodate considerable expansion for Exchange-Traded Funds (ETFs),” is one possible way to paraphrase the original statement.
Despite the obstacles, Australia’s pursuit of approving bitcoin spot ETFs has been complex. Previous attempts to introduce such products on the smaller CBOE Australia exchange didn’t garner significant traction. Cosmos Asset Management’s ETF was removed due to insufficient investments, and Global X 21Shares Bitcoin ETF, launched on CBOE Australia, has amassed merely around $62 million in assets up until now.
As an analyst, I believe that transitioning to a more prominent listing on the ASX exchange will bring several benefits for these ETFs, despite any initial challenges. The increased visibility stemming from the ASX’s larger trading volume and expansive investor base could potentially lead to higher inflows.
As a crypto investor, I’m excited about the drive for spot Bitcoin ETFs in Australia. This push comes at an opportune time when global markets are becoming more receptive to digital assets. Regulatory bodies worldwide are shaping the frameworks that enable cryptocurrencies to be integrated into mainstream financial products, signaling a significant shift in their perception as reliable and viable investment options.
As a researcher studying the cryptocurrency sector, I’ve observed that companies like BetaShares are proactively working towards regulatory approval. Their primary focus is on addressing key concerns, particularly ensuring the secure custody of digital tokens. The Australian Securities Exchange (ASX) is our preferred listing destination. By choosing ASX, we aim to leverage its robust regulatory framework and strong market position.
Lisa Wade, the CEO of DigitalX, advocated for Australians to consider dedicating as much as 10% of their investment funds to cryptocurrencies, demonstrating her confidence in their prospective value as innovative financial assets. In her words, “Cryptocurrencies carry the capability to serve as financial foundations that could reshape the very concept of money.”
At press time, BTC traded at $62,508.
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2024-04-29 09:26