Australia is set to launch its first-ever spot Bitcoin ETFs by the end of 2024, according to Bloomberg. This development represents a significant milestone as both local and international players compete to capture the Australian Bitcoin exchange-traded fund market.
BetaShares, an Australian financial entity, is currently in the process of creating an ETF spot for the Australian Securities Exchange (ASX). DigitalX Ltd has also announced its initiation of the procedure, while global investment manager VanEck, which already oversees Bitcoin ETFs in the US and Europe, has proposed entering the Australian market.
ASX officials have confirmed that negotiations with potential issuers for listing new crypto-ETFs are already underway. Concrete information about these negotiations, however, was not provided during the briefing.
Australia has previously experienced challenges in approving the creation of a Bitcoin ETF. Cosmos Asset Management played a role in launching the first Bitcoin spot exchange hosted by CBOE two years ago, but lack of investor interest led to the fund’s closure and delisting in late 2022. Despite this, the Global X 21Shares Bitcoin ETF has accumulated over $62 billion in assets. Monochrome Asset Management is currently working on Bitcoin ETFs on the CBOE.
The global landscape of investment products related to cryptocurrencies is rapidly evolving. As of April 24, 2023, the market capitalization of US spot Bitcoin ETFs amounts to approximately $53 billion. Hong Kong also plans to unveil a combined Bitcoin and Ethereum spot ETF, with active trading to begin soon. Chinese fund managers are following suit by planning to launch their own cryptocurrency ETFs for Bitcoin and Ether.
The London Stock Exchange has announced that it will accept applications for crypto exchange-traded notes (ETNs) from early April. ETNs, like ETFs, provide regulated ways for investors to gain exposure to crypto-assets on major exchanges.
Australia’s decision to welcome fund-based spot Bitcoin ETFs demonstrates the increasing acceptance of digital currencies as part of the traditional financial system. The release of these products is expected to reshape the investing scene in Australia and contribute to the maturity of global cryptocurrency markets.