Australia is preparing to join Bitcoin exchange-traded
fund (ETF) bandwagon. The country’s primary equity exchange, ASX Ltd,
is anticipated to approve the launch of Bitcoin ETFs following similar approvals in the US and Hong Kong, Bloomberg reported.
Australia Prepares for Crypto ETFs
This year, US Bitcoin ETFs accrued an impressive
$53 billion, reflecting a growing interest in cryptocurrencies
among investors. Notable players like Van Eck Associates Corp. and BetaShares
Holdings Pty are expected to introduce ETFs in Australia. The firms seek to
capitalize on the crypto resurgence that recently pushed Bitcoin to a record
high of over $70,000.
ASX, responsible for most equity trading in Australia, is reportedly evaluating applications for spot Bitcoin ETFs. Although the exchange has not confirmed the exact timeline, insiders suggest that approvals could come before the end of the year.
This move marks a significant milestone in
Australia’s crypto investment landscape. It could potentially create investment
opportunities for institutional and retail investors. Australia’s $2.3 trillion pension market is poised to
play an important role in driving inflows into Bitcoin ETFs. Individual
investors can diversify their portfolios because a substantial portion of
retirement assets are under self-managed superannuation programs.
These self-managed funds could emerge as significant
buyers of spot-crypto funds as interest in cryptocurrencies surges. Pensioners
are expected to tap into the potential of digital assets as alternative
investments.
Australia Renews Push for Bitcoin ETFs
While the surge in applications for Bitcoin ETFs marks a
new chapter for Australia’s crypto market, it is not the first time the country
has attempted to launch crypto ETFs. Previous endeavors, such as Cosmos Asset Management’s
spot-Bitcoin ETF in 2022, experienced low uptake and were eventually delisted. However, the industry is optimistic due to the success
of US Bitcoin ETFs and the evolving market dynamics.
Last year, Australia introduced a proposal to tighten
regulations for cryptocurrency trading. Under the proposal, crypto exchanges
operating in the country must obtain licenses from the Australian Securities
and Investment Commission.
This initiative seeks to address concerns about consumer
protection and the need to mitigate risks associated with the expanding
crypto market. Exchanges holding
assets exceeding US$ 3.2 million (AU$ 5 million) or managing funds totaling
more than US$ 946 (AU$ 1,500) per individual must obtain the licenses.
This article was written by Jared Kirui at www.financemagnates.com.
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