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Australia is set to introduce a range of spot Bitcoin exchange-traded funds (ETFs) on its primary stock exchange by the conclusion of 2024, reflecting similar efforts previously undertaken in the United States and Hong Kong.
Prominent entities in the financial sector, such as Van Eck Associates Corp. and BetaShares Holdings Pty, are actively gearing up for these launches, with the Australian Securities Exchange (ASX) expected to provide approvals in the near future.
Sources who preferred to remain unnamed indicated that ASX Ltd., which accounts for around 80% of the nation’s equity trading, is likely to approve the first spot Bitcoin ETFs prior to 2025.
This advancement occurs amid a rising global interest in cryptocurrency ETFs, driven by substantial investments in comparable funds in the United States, where firms like BlackRock and Fidelity Investments are leading the market.
“The inflows into the US digital assets market demonstrate that digital assets are here to stay,” remarked Justin Arzadon, head of digital assets for BetaShares.
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He also noted that the company has secured ASX tickers for spot-Bitcoin and spot-Ether ETFs, indicating strong preparations for upcoming listings.
An ASX representative confirmed the exchange’s discussions with multiple issuers eager to launch Bitcoin-based ETFs, although a specific timeline for these approvals has not been revealed.
Bitcoin’s Potential Impact On Australia’s Pension Market
The launch of spot-Bitcoin ETFs could significantly influence Australia’s $2.3 trillion pension market.
About 25% of the nation’s retirement assets are managed through self-managed superannuation funds that allow individuals to select their investments. These funds are seen as potential major investors in the new spot-crypto offerings.
“Self-managed super funds, brokers, financial advisers, and platform money create a sufficiently large addressable market to support considerable ETF growth,” stated Jamie Hannah, deputy head of investments and capital markets at VanEck Australia.
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Nonetheless, Australia’s path toward adopting spot-Bitcoin ETFs has encountered obstacles. Previous attempts to introduce similar products on the smaller CBOE Australia platform achieved limited success.
Cosmos Asset Management’s ETF was delisted due to insufficient inflows, and the Global X 21Shares Bitcoin ETF, also launched on CBOE Australia, has only gathered around $62 million in assets thus far.
Despite these challenges, the transition to the more prominent ASX platform is anticipated to offer these ETFs enhanced visibility and potentially increased inflows, owing to the ASX’s larger trading volume and wider investor base.
The initiative for spot Bitcoin ETFs in Australia coincides with a period when global markets are becoming more receptive to digital assets.
Regulatory authorities worldwide are progressively developing frameworks that facilitate the inclusion of cryptocurrencies in mainstream financial products, indicating a notable shift in their perceived stability and viability as investment options.
BetaShares and other companies are actively preparing for regulatory approval, focusing on addressing essential issues such as the secure custody of tokens.
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“ASX is the exchange we want to list on,” stated Arzadon, highlighting the strategic significance of ASX’s strong regulatory environment and established market presence.
Lisa Wade, CEO of DigitalX, suggested that Australians might allocate as much as 10% of their investment portfolios to cryptocurrencies, reflecting a strong confidence in their long-term potential as alternative financial instruments.
“Cryptocurrencies have the potential to act as financial rails that could redefine the future of money,” Wade remarked.
Disclaimer: The information provided is not trading advice. Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
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