Spread the Word!
Rumor has it that the Australian Securities Exchange (ASX) is gearing up to launch the first spot Bitcoin exchange-traded funds (ETFs) on its main board by the end of 2024, as per a report by Bloomberg today, citing insider sources.
A core player in Australia’s capital markets, ASX manages about 80% of equity trading, attracting issuers like VanEck and BetaShares for potential listings on the exchange.
Justin Arzadon, a key figure in BetaShares’ digital assets team, pointed out that the significant inflows from the US demonstrate the longevity of digital assets. Company has already secured ASX tickers for spot Bitcoin and spot Ethereum ETFs.
Arzadon highlighted ASX as their top choice for listing, underscoring the importance of secure custody of underlying Bitcoin assets for these ETFs.
Meanwhile, DigitalX, an Australia-based technology and investment firm, disclosed its ETF application in its semi-annual results. VanEck, with existing ETF offerings in the US and Europe, resubmitted an application in February, as per Bloomberg.
An ASX spokesperson hinted at ongoing talks with multiple issuers keen on launching crypto asset-based ETFs, withholding a concrete timeline.
The anticipated approval follows in the footsteps of the US and Hong Kong, with spot Bitcoin ETFs in the US amassing $53 billion this year. Noteworthy issuers include BlackRock and Fidelity Investments. Additionally, direct investment funds in Bitcoin and Ether are slated to kick off trading in Hong Kong shortly.
Another catalyst for the development is Australia’s $2.3 trillion pension market, which could massively contribute to ETF inflows.
With about a quarter of the country’s retirement assets in self-managed superannuation programs, these could emerge as principal investors in spot-crypto funds, said Jamie Hannah, VanEck Australia’s deputy head of investments and capital markets to Bloomberg.
Hannah speculated that with interest from various stakeholders like self-managed super funds, brokers, financial advisors, and platform money, the ETF could hit impressive figures.
DigitalX CEO Lisa Wade suggested Australians could potentially allocate up to 10% of their portfolios to cryptos, emphasizing their role as “financial rails.”
Prior Endeavors and Obstacles
Not the first rodeo for launching Bitcoin ETFs in Australia, with two such ETFs debuting on CBOE Australia in 2022, though one got delisted.
Currently, the Global X 21Shares Bitcoin ETF remains the sole spot Bitcoin ETF in the country, managing around $62 million in assets. Issued by 21Shares and Global X ETFs (formerly known as ETF Securities) in 2022, the fund has made significant strides.
While Cosmos Asset Management ventured into the space with a spot Bitcoin ETF in 2022, it ultimately faced delisting due to tepid inflows.
Monochrome Asset Management, under the leadership of ex-Binance Australia CEO Jeff Yew, has sought approval to launch another ETF on CBOE Australia.
Spread the Word!
