As a seasoned crypto investor with a strong understanding of the market dynamics and regulatory landscape, I am excited about the upcoming Bitcoin ETF launches in Australia. The recent wave of approvals in the US and Hong Kong has proven the demand for these products and their potential to bring institutional investors into the crypto space.
As a researcher studying the cryptocurrency market, I’ve noticed an unprecedented excitement surrounding Bitcoin Exchange-Traded Funds (ETFs) in Australia. Following in the footsteps of the US and Hong Kong, Australian financial regulators are preparing for a wave of Bitcoin ETF launches.
As a crypto investor, I’ve learned that the Australian Securities Exchange (ASX) has received applications from no less than two organizations for listing their cryptocurrency products. Additionally, there’s another application waiting in the wings.
Australia Braces for Bitcoin ETF
According to a recent Bloomberg report, it’s anticipated that ASX Ltd., which oversees approximately 80% of Australia’s equity trading, will give its approval for the launch of the first Bitcoin Exchange-Traded Funds (ETFs) on their main board prior to the close of 2024.
As a financial analyst, I’ve observed an impressive surge in popularity for Bitcoin exchange-traded funds (ETFs) based in the United States. These ETFs have amassed an astounding $53 billion in assets under management this year alone. Notably, there have been outflows from Grayscale’s offering, but BlackRock Inc., and Fidelity Investments have emerged as top performers in this space.
Beginning April 30, funds specializing in Bitcoin and Ether will commence trading in Hong Kong. The issuers aim to capitalize on the substantial crypto recovery which drove Bitcoin’s price up to a record-breaking nearly $74,000 in the previous month.
Sydney-based BetaShares is actively preparing to introduce a new product on the Australian Securities Exchange (ASX). The surge of cryptocurrency investments in the US markets suggests an increasing acceptance and sustainability for this asset class, according to Justin Arzadon, who heads the digital assets division at BetaShares. In fact, the company has already secured ASX tickers for potential Bitcoin and Ether exchange-traded funds (ETFs), signaling their optimism towards the crypto market.
The ASX is currently engaged in talks with several issuers who are looking to launch crypto-ETFs, although a definitive schedule has not yet been disclosed.
Demand for Spot ETFs
Another noteworthy point is that Australia’s massive $2.3 trillion pension market could contribute substantially to these capital inflows. This is especially relevant given that approximately 25% of retirement funds are managed by individuals themselves in self-managed superannuation programs, enabling them to make their own investment decisions.
VanEck, known for providing comparable ETFs in both the US and Europe, re-filed an application in February. According to Jamie Hannah, deputy head of investments and capital markets at VanEck Australia, these proposed programs may function as purchasers of crypto funds at their spot price. The Australian market presents a significant opportunity for growth due to self-managed superannuation funds, brokers, financial advisors, and digital platform money.
As a researcher studying the Australian Bitcoin Exchange-Traded Fund (ETF) market, I’ve observed that the latest round of listings represents the second surge in Bitcoin ETF launches Down Under. Two years ago, we witnessed the initial rollout of these products on CBOE Australia. However, not all ETFs have experienced success. For instance, Cosmos Asset Management’s 2022 offering didn’t attract substantial inflows and was eventually delisted. In contrast, the Global X 21Shares Bitcoin ETF has managed to amass significant assets since its inception.
Led by its CEO, Jeff Yew (previously of Binance Australia), Monochrome Asset Management is seeking approval from CBOE Australia to introduce a Bitcoin spot exchange-traded fund (ETF).
BetaShares chooses to list on the ASX over other platforms because of its rigorous oversight of token custody. In contrast, DigitalX Ltd., as disclosed in their interim report in February, has submitted an application for something. According to DigitalX’s CEO Lisa Wade, Australians may consider allocating as much as 10% of their investment portfolios towards cryptocurrencies, acknowledging their role as emerging financial infrastructure.
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2024-04-30 01:22