Australia Prepares for Surge in Spot Bitcoin ETF Launches
Australia is poised for an increase in spot Bitcoin exchange-traded fund (ETF) launches following successes in the United States and Hong Kong. Major issuers, including Van Eck Associates Corp. and BetaShares Holdings Pty, are preparing to list their spot Bitcoin ETFs on the Australian Securities Exchange (ASX), the primary platform for equity trading in the country.
Insiders familiar with the matter anticipate that the ASX will approve the first spot Bitcoin ETFs for its main board by the end of 2024. This momentum follows significant net flows to U.S. spot Bitcoin ETFs this year, with contributions from industry giants like BlackRock Inc. and Fidelity Investments.
Leading Issuers Look to Capitalize on Crypto Market Resurgence
- BetaShares, a Sydney-based company, is actively working on a product launch on the ASX
- DigitalX Ltd. has already submitted an application for a spot Bitcoin ETF
- VanEck has resubmitted its application for spot Bitcoin ETFs in February
Justin Arzadon, BetaShares’ head of digital assets, highlights the robust U.S. inflows as evidence of the permanent presence of digital assets. The company has allocated ASX tickers for spot Bitcoin and spot Ether ETFs, signaling its commitment to these offerings.
Australia’s $2.3 trillion pension market, known for self-managed superannuation programs, is expected to drive significant inflows into the new ETFs. Self-managed super funds, alongside financial advisors, brokers, and platform money, represent a substantial market for spot-crypto funds in the country, as noted by Jamie Hannah, VanEck Australia’s deputy head of investments and capital markets.
Second Attempt at Spot Bitcoin ETFs in Australia
This recent wave of spot Bitcoin ETF applications in Australia follows previous attempts on CBOE Australia, the junior bourse in the country, two years ago. While earlier funds from Cosmos Asset Management and Global X 21Shares faced challenges with growth or delisting, issuers are optimistic about the potential success of ASX listings.
Hot Take: The Future of Spot Bitcoin ETFs in Australia
Australia is poised to join the global trend of launching spot Bitcoin ETFs, offering investors new opportunities to engage with the cryptocurrency market. With major issuers gearing up for ASX listings, the country’s pension market and self-managed superannuation programs could play a pivotal role in driving significant inflows into these innovative investment products.
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