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Australia’s largest stock exchange could approve spot Bitcoin ETFs by late 2024.
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Sydney-based BetaShares, DigitalX and VanEck actively pursue Bitcoin ETFs on ASX.
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ETFs target Australia's $2.3 trillion pension market for crypto investment inflows.
Australia is gearing up for a series of Bitcoin exchange-traded fund (ETF) launches, following in the footsteps of the US and Hong Kong. Issuers such as Van Eck Associates and BetaShares Holdings are preparing for listings, while Australia’s stock exchange (ASX) is expected to list its first approved batch of spot Bitcoin ETFs by the end of 2024.
Australia Prepares For Bitcoin ETFs
Sources familiar with the matter anticipate that the Australian Stock Exchange (ASX), handling around 45% of the country’s equity trading, will approve the first spot Bitcoin ETFs for the main board before the conclusion of 2024.
𝗝𝗨𝗦𝗧 𝗜𝗡: Bitcoin ETFs are coming to Australia. 🇦🇺
— Lark Davis (@TheCryptoLark) April 29, 2024
Australian Securities Exchange (ASX) is expected to approve the first spot Bitcoin ETFs before the end of 2024.
The world is on a Bitcoin adoption spree, yet people are hesitant to buy $BTC at current prices.
This move is poised to introduce a significant evolution in Australia’s investment as ASX had a domestic market capitalization of $2.7 trillion.
Meanwhile, the planned launch of Bitcoin ETFs in Australia follows the successful introduction of similar products in the US earlier this year, which have collectively amassed $53.16 billion in assets. However, this success has encouraged issuers to expand offerings globally, with Hong Kong also set to introduce spot Bitcoin and Ether ETFs by April 30, following initial approval in mid-April.
Issuers and Applications
BetaShares, based in Sydney, is actively working towards launching a Bitcoin ETF on the ASX, while DigitalX has also applied for approval. VanEck, a renowned issuer offering similar ETFs in the US and Europe, resubmitted an application in February, highlighting the strategic importance of the Australian market for expanding cryptocurrency investment opportunities.
As per the reports Bitcoin ETF issuers are eyeing Australia’s massive $2.3 trillion pension market, aiming to attract inflows from retirement assets held in self-managed superannuation programs.
Approximately a quarter of the country’s retirement assets are managed through these programs, presenting a significant opportunity for cryptocurrency investment products.
Previous Experience
This is not the first time that spot Bitcoin ETFs are coming to Australia. In 2022, Sydney-based Cosmos Asset Management introduced a spot Bitcoin ETF in Australia.
However, the ETF struggled to attract significant investor interest and was later delisted. In contrast, another Bitcoin and Ethereum ETF launched the same year by Global X 21Shares has been more successful, managing over $62 million in assets.
As Australia prepares for the arrival of Bitcoin ETFs by the end of 2024, investors and industry stakeholders are poised for further advancements in the adoption of cryptocurrencies within traditional investment portfolios.