Australia is preparing to join Bitcoin exchange-traded funds (ETFs) bandwagon. The country's primary equity exchange, ASX Ltd, is expected to approve the launch of Bitcoin ETFs following similar approvals in the US and Hong Kong, Bloomberg reported.

Australia Prepares for Crypto ETFs

This move comes after US ETFs accrued an impressive $53 billion this year, reflecting a growing interest in cryptocurrencies among investors. Notable players like Van Eck Associates Corp. and BetaShares Holdings Pty are expected to introduce ETFs in Australia. The firms seek to capitalize on the crypto resurgence that recently pushed Bitcoin to a record high of nearly $74,000.

ASX, responsible for most equity trading in Australia, is reportedly evaluating applications for spot Bitcoin ETFs. Insiders suggest that approvals could come before the end of the year, although the exchange has not confirmed an exact timeline.

This move signals a significant milestone in Australia's crypto investment landscape. It could potentially create investment opportunities for institutional and retail investors. Australia's $2.3 trillion pension market is poised to play an important role in driving inflows into Bitcoin ETFs. Individual investors can diversify their portfolios because a substantial portion of retirement assets are under self-managed superannuation programs.

These self-managed funds could emerge as significant buyers of spot-crypto funds as interest in cryptocurrencies grows. Pensioners are expected to tap into the potential of digital assets as alternative investments.

Australia Renews Push for Bitcoin ETFs

While this surge in Bitcoin ETF applications marks a new chapter for Australia's crypto market, it is not the first time the country has attempted to launch digital asset ETFs. Previous endeavors, such as Cosmos Asset Management's spot-Bitcoin ETF in 2022, experienced low uptake and eventual delisting due to little inflows. However, the industry is optimistic due to the success of US ETFs and the evolving market dynamics.