Australia is reportedly gearing up for a surge in spot Bitcoin exchange-traded fund (ETF) launches following the successful introduction of similar products in the United States and Hong Kong.
According to a report by Bloomberg published on April 28, major issuers, including Van Eck Associates Corp. and BetaShares Holdings Pty, are lining up to list their spot Bitcoin ETFs on the Australian Securities Exchange (ASX), which handles the majority of the country’s equity trading.
According to individuals familiar with the matter, who requested anonymity due to the confidential nature of the information, the ASX is expected to approve the first spot Bitcoin ETFs for its main board before the end of 2024. This move comes on the heels of the impressive total net flows to U.S. spot Bitcoin ETFs this year, with offerings from prominent players like BlackRock Inc. and Fidelity Investments.
Issuers are eager to capitalize on the recent resurgence in the cryptocurrency market, which saw Bitcoin reach a record high of nearly $74,000 last month.
Per Bloomberg’s article, BetaShares, a Sydney-based company, is actively working on launching a product on the ASX, as confirmed by a spokesperson. DigitalX Ltd., another local player, previously announced in its half-year results that it had submitted an application, while VanEck, which already offers similar ETFs in the U.S. and Europe, resubmitted its application in February.
Justin Arzadon, head of digital assets for BetaShares, emphasized the significance of the U.S. inflows, stating that they “prove digital assets are here to stay.” The company has apparently already reserved ASX tickers for both spot Bitcoin and spot Ether ETFs.
The Bloomberg report says that Australia’s $2.3 trillion pension market is expected to play a significant role in driving inflows into these new ETFs. Approximately one-quarter of the country’s retirement assets are held in self-managed superannuation programs, which allow individuals to choose their own investments. These self-managed super funds, along with brokers, financial advisers, and platform money, constitute a sizable addressable market for spot-crypto funds, according to Jamie Hannah, deputy head of investments and capital markets for VanEck Australia.
This latest wave of spot Bitcoin ETF applications marks a second attempt in Australia, following initial listings on CBOE Australia, the country’s junior bourse, two years ago. While some of these earlier funds, such as those launched by Cosmos Asset Management and Global X 21Shares, have struggled with inflows or have been delisted, issuers remain optimistic about the potential of the ASX listings.
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