Australia's Securities Exchange (ASX) is anticipated to approve spot Bitcoin ETFs before 2024, according to Bloomberg sources. Pending applications from VanEck, DigitalX, and BetaShares, along with the success of spot Bitcoin ETFs in the US and Hong Kong, indicate a growing global trend towards regulating and embracing digital assets in traditional financial markets.
Australian Securities Exchange Set to Approve Spot Bitcoin ETFs
Sydney, Australia - The Australian Securities Exchange (ASX), the country's largest securities exchange, is poised to approve spot Bitcoin exchange-traded funds (ETFs) before the end of 2024, according to a report by Bloomberg. The move would mark a significant milestone in the adoption of cryptocurrencies in Australia.
Sources familiar with the development have indicated that the approval process is underway and could be completed within the specified timeframe. An ASX spokesperson has confirmed that the exchange continues to engage with several issuers seeking to list cryptoasset-based ETFs, but declined to provide a definitive timeline.
The introduction of spot Bitcoin ETFs in Australia would follow the successful launch of similar products on the CBOE Australia exchange in 2022 by asset manager 21Shares. However, ASX controls around 80% of the country's equity trading, making its approval crucial for widespread adoption of crypto ETFs.
Asset management firms VanEck, DigitalX, and BetaShares have submitted applications for spot Bitcoin ETFs in Australia. BetaShares' head of digital assets has emphasized that the strong inflows into U.S. Bitcoin ETFs demonstrate the staying power of digital assets.
In the United States, spot Bitcoin ETFs were approved in January, initially attracting substantial inflows. However, investor enthusiasm has waned in recent weeks, resulting in outflows on three consecutive days, according to data from Farside Investors. This decline is attributed to concerns about slower-than-expected economic growth and continued high interest rates.
Despite the moderation in U.S. ETF inflows, global interest in spot Bitcoin ETFs remains high. The Securities and Futures Commission (SFC) of Hong Kong has recently approved several spot Bitcoin and Ethereum ETFs from asset managers ChinaAMC, Harvest, and Bosera HashKey, which are expected to begin trading this week.
The approval of spot Bitcoin ETFs in Australia would provide investors with a regulated and accessible way to gain exposure to Bitcoin, potentially further driving the adoption of cryptocurrencies in the country. The ASX's established infrastructure and regulatory framework could make it an attractive destination for both domestic and international investors seeking to invest in this emerging asset class.
It is important to note that the approval of spot Bitcoin ETFs does not guarantee their widespread acceptance or success. Investors should exercise caution and conduct thorough research before investing in any ETF, including those based on cryptocurrencies.
