Spot Bitcoin ETFs Approaching Approval On Australian Stock Exchange

The Australian Securities Exchange (ASX) is preparing to approve spot bitcoin exchange-traded funds (ETFs) by the end of 2024. At least two entities have applied for approval with the ASX, with a third rumored to be in the works. This move comes after Hong Kong recently approved the first batch of spot bitcoin and ether ETFs, signaling growing momentum for bitcoin ETFs in Asia.

Australian Securities Exchange Poised to Grant Approval for Spot Bitcoin ETFs by Year-End

The Australian Securities Exchange (ASX), a behemoth in Australia's equity market, is poised to grant approval to the first batch of spot bitcoin exchange-traded funds (ETFs) before the curtain falls on 2024. Citing anonymous sources privy to the matter, Bloomberg's incisive report reveals that at least three entities have already submitted applications to the ASX, with one more diligently working towards their submission.

ASX's Historic Move

The ASX, a titan that commands a staggering 90% of Australia's equity market, is poised to make history by approving the first spot bitcoin ETFs, mirroring a growing global trend towards legitimizing cryptocurrencies. This move aligns with the recent approvals granted in the United States and signals a burgeoning embrace of digital assets by mainstream financial institutions.

Applicants Vie for Approval

DigitalX Ltd., a prominent local player, took the lead by submitting an application in February. VanEck, a globally renowned investment management firm, followed suit, resubmitting its application last month. BetaShares, a Sydney-based ETF provider, has also expressed its aspirations to launch a spot bitcoin ETF on the ASX, adding to the competitive landscape.

Regulatory Landscape

The ASX, adhering to its longstanding policy, declined to provide any additional commentary beyond its previous statement, emphasizing that it refrains from commenting on specific investment product applications. However, the exchange acknowledged its ongoing discussions with several issuers eager to list crypto-asset-based ETFs.

Momentum Gathers in Asia

The wave of approvals for spot bitcoin ETFs has gained significant traction in Asia and beyond, ignited by the groundbreaking approvals granted in the United States. Hong Kong, a prominent financial hub, recently authorized the first batch of spot bitcoin and ether ETFs, further solidifying the acceptance of cryptocurrencies in the region.

Competition Intensifies

While the ASX stands as the dominant force in Australia's equity market, it faces growing competition from Cboe Australia, a formidable rival. Monochrome Asset Management, an Australian-based investment firm, opted to submit its spot bitcoin ETF application to Cboe Australia, citing the exchange's expertise in Asia and its ability to provide broader investor access.

Conclusion

The anticipated approval of spot bitcoin ETFs by the ASX before the end of 2024 marks a watershed moment for the Australian cryptocurrency landscape. This move reflects the growing acceptance of digital assets by traditional financial institutions and opens up new avenues for investors seeking exposure to the burgeoning world of cryptocurrencies. As competition intensifies and regulatory frameworks evolve, the future of cryptocurrency adoption in Australia and beyond remains an exciting and rapidly evolving space to watch.