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Monochrome’s CEO predicts that Bitcoin ETFs in Australia could see $3-4 billion inflows in the first three years.
Jeff Yew, CEO of Monochrome, predicts that Australian spot Bitcoin ETFs may receive $3 Billion to $4 Billion in inflows within the first three years.
Australia Likely To Introduce Spot Bitcoin ETFs
Australia has only two funds that deal with spot crypto – the Global X 21Shares Bitcoin ETF and the Global X 21Shares Ethereum ETF. In contrast, the US has 11 spot bitcoin funds with $53.16 Billion in net assets.
Hong Kong is also awaiting its first spot in Bitcoin and ether ETFs, with six funds set to be officially listed on April 30 after receiving approval on April 15. According to Bloomberg’s senior ETF analyst Eric Balchunas, Hong Kong’s approval is a significant positive development for crypto despite its estimated size being much smaller compared to the US.
When Can One Expect The Approval
VanEck Australia and BetaShares are set to be approved for their spot Bitcoin ETF applications before this year’s end, following the ETFs’ success in the US and Hong Kong. The US Bitcoin ETF approvals have accumulated $53 Billion AUM across eleven products.
“Australia is a Crypto Heavy Country”
According to Jeff Yew, Australia is a “very crypto-heavy country,”. He expects Australian spot Bitcoin ETFs to generate between $3 Billion and $4 Billion in net inflows within the first three years.
Yew explained that the demand for Bitcoin ETFs would be driven primarily by fund managers looking to gain exposure to Bitcoin and self-managed super fund (SMSF) investors and retail investors with a more minor yet still considerable appetite.
Yew believes that SMSF investors currently have direct exposure to Bitcoin on crypto exchanges, which he considers to be intrinsically risky and potentially a “ticking time bomb” if crypto exchanges were to collapse. According to Yew, the Australian Taxation Office has reported that there is over $1 Billion worth of crypto on exchanges, and a majority of this amount comes from SMSF investors.
However, Bitcoin ETFs allow these investors to gain regulated and, therefore, safer exposure to digital assets, said Yew. Monochrome initially applied for a spot Bitcoin ETF with the ASX on July 14, 2023, but later switched to CBOE Australia, a much smaller exchange, due to a slow approval process at the ASX.
Conclusion
Jeff Yew, CEO of Monochrome, predicts that Australian Bitcoin ETFs may receive billions in inflows within the first 3 years. Fund managers, SMSF investors, and retail investors would drive the demand for Bitcoin ETFs. Bitcoin ETFs offer safer exposure to digital assets.
Disclaimer
The views and opinions stated by the author or any people named in this article are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos, or other related indexes comes with a risk of financial loss.