Regulatory Approval Granted for DigitalX’s Bitcoin ETF
Blockchain-focused asset manager DigitalX has received regulatory approval to launch its spot Bitcoin exchange-traded fund (ETF). The approval positions DigitalX as the second company to offer a Bitcoin ETF on the Australian Securities Exchange (ASX), following VanEck’s recent approval.
DigitalX Bitcoin ETF Launch Details
The DigitalX Bitcoin ETF, listed under the ticker BTXX, is scheduled to debut on July 12 at 10 am local time. The announcement was made by the firm on July 8, marking a significant milestone for DigitalX and the Australian digital asset investment market.
- CEO Lisa Wade views this approval as a “watershed moment” for the company and the market, highlighting the direct access to Bitcoin it offers customers through a regulated and liquid fund structure.
- DigitalX has partnered with K2 Asset Management and 3iQ to bring the spot Bitcoin ETF to fruition, ensuring responsible entity management and promotion both locally and internationally.
DigitalX Bitcoin ETF in Comparison
VanEck’s Bitcoin ETF, known as VBTC, achieved modest trading volume of $1.3 million on its initial trading day. However, this pales in comparison to the $450 million average daily volume seen by nine spot Bitcoin ETFs in the United States during their first ten trading days. This illustrates the growing interest and potential impact of Bitcoin ETFs in the market.
Inflows in Digital Asset Products
As digital asset investment products continue to gain traction, significant inflows have been witnessed. CoinShares reported inflows of $441 million, driven by investors seizing buying opportunities amidst recent price weaknesses and selling pressures. Despite relatively low ETP volumes of $7.9 billion due to seasonal patterns, inflows into digital asset investment products have remained robust.
- While ETP participation rates in total exchange markets have decreased by 17%, the crypto market in Australia has displayed notable growth in ownership and adoption.
- Australia boasts a 17% crypto ownership rate, exceeding the global average of 15%. The country’s crypto market has garnered attention from regulatory bodies, with instances of scrutiny and investigations into cryptocurrency exchanges.
Australian Cryptocurrency Market Dynamics
Australia’s crypto market has seen substantial growth, with ownership rates above the global average and increasing regulatory attention. Instances such as Binance Australia’s operational changes and investigations by ASIC have highlighted the evolving landscape of cryptocurrency regulation in the country.
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