Spot Bitcoin ETFs Expected in Australia by Year-End
The Australian Securities Exchange (ASX), Australia’s largest stock exchange, is expected to list its first spot bitcoin exchange-traded funds (ETFs) by the end of 2024.
Increased Issuer Interest
Several issuers, including VanEck, BetaShares, and DigitalX, have already submitted applications for such ETFs. VanEck, an established ETF provider, resubmitted its application in February after a previous one was rejected. BetaShares also expressed its intent to launch a spot bitcoin ETF on the ASX.
Global Trend Continues
Australia’s move towards spot bitcoin ETFs follows a global trend. The U.S. has approved 11 spot bitcoin ETFs, which have amassed over $53 billion in total net assets. Hong Kong also recently approved six spot bitcoin and ether ETFs, further solidifying the growing demand for such investment vehicles.
Local Investor Demand
Australian investors have been trading spot bitcoin ETFs since 2022, currently listed on CBOE Australia. The Global X 21Shares Bitcoin and Ethereum ETFs are the only two such funds available in Australia. The introduction of spot bitcoin ETFs on the ASX will provide investors with greater choice and access to these funds.
ASX’s Considerations
The ASX has been engaging with issuers interested in launching crypto-asset-based ETFs. However, it remains focused on ensuring secure custody of the underlying bitcoin assets for these ETFs. The exchange has not provided a specific timeline for approval but stated that it is actively considering the applications.
Market Impact
The approval of spot bitcoin ETFs on the ASX is expected to significantly impact the Australian market. These funds will provide investors with an avenue to gain exposure to bitcoin without having to purchase and store the cryptocurrency themselves. It could also attract institutional investors, further legitimising the cryptocurrency asset class.
Conclusion
Australia’s move towards spot bitcoin ETFs is a positive development for the country’s financial ecosystem. It reflects the growing demand for cryptocurrencies as an investment option and brings Australia in line with other major financial markets. As the ASX continues to consider the applications, the approval of spot bitcoin ETFs by the end of 2024 seems imminent, providing Australian investors with new opportunities to participate in the cryptocurrency market.