Key takeaways:
- The ASX may approve several spot Bitcoin ETFs by the end of 2024.
- For Australian investors interested in digital assets, introducing Bitcoin ETFs would provide a regulated and safe investing option.
The Australian Securities Exchange (ASX), the country’s biggest stock market, may approve several spot Bitcoin Exchange Traded Funds (ETFs) by the end of 2024.
Before the year is out, local ETF-focused fund manager BetaShares and fund issuer VanEck Australia are expected to receive approval for their spot Bitcoin ETF applications, following in the footsteps of fund issuers in the US and Hong Kong, anonymous sources familiar with the situation told Bloomberg.
The increase in spot Bitcoin ETF applications follows the US Bitcoin ETF approvals, wherein eleven different products have amassed approximately $53 billion in assets under management (AUM).
For Australian investors interested in digital assets, introducing Bitcoin ETFs would provide a regulated and safe investing option.
This coincides with a rise in the demand for spot cryptocurrency exchange-traded funds (ETFs) around the world as exchanges and nations look for methods to integrate cryptocurrencies like Ethereum and Bitcoin into traditional investing portfolios.
Companies like BetaShares and Monochrome Asset Management are waiting on permission from Cboe Australia and ASX.
Since 2022, Australian investors have been able to trade spot bitcoin ETFs, which are presently available on CBOE Australia. On its website, Global X 21Shares Bitcoin and Ethereum ETFs are listed as the only two spot crypto funds available in Australia.
In the interim, January saw the US launch spot cryptocurrency ETFs for the first time. Since then, the 11 Bitcoin ETFs ranked first in the US have accumulated total net assets of $53.16 billion, surpassing pre-launch projections.
The first wave of spot Bitcoin and Ether ETFs is also anticipated in Hong Kong. Following the first approval on April 15, six funds will be formally listed on Tuesday. Even though Hong Kong’s cryptocurrency market is anticipated to be far smaller than that of the US, this approval is a big positive milestone for the industry.
