thecryptobasic.com
In a landmark move for crypto investment in Australia, the Australian Securities Exchange (ASX) has given the green light to its inaugural spot Bitcoin exchange-traded fund (ETF).
The ASX, Australia’s principal stock exchange, has authorized the VanEck Bitcoin ETF (VBTC) to commence trading, slated for June 20. This development is a testament to Australia’s progressive regulatory stance on cryptocurrencies and reflects the burgeoning interest in crypto ETFs globally.
Australia Welcomes Spot Bitcoin ETF
A spokesperson for the ASX emphasized that the VanEck product is the only one with approval for now, stressing that there are ongoing discussions involving other issues. The introduction of VBTC by investment firm VanEck offers investors a direct and regulated avenue to invest in Bitcoin.
This is particularly noteworthy as it follows the successful trajectory of spot Bitcoin ETFs in the United States, which have garnered substantial investor interest and have been pivotal in bringing Bitcoin to conventional investment portfolios.
Australia’s regulatory climate around crypto has been cautiously optimistic. Notably, crypto trading in Australia is both legal and taxed by the Australian Tax Office (ATO). Exchanges operating in the country are mandated to register with AUSTRAC.
The approval of a spot Bitcoin ETF by ASX is indicative of a maturing market that is increasingly acknowledging the potential of cryptocurrencies as legitimate investment vehicles as Australians continue to show interest in crypto. The IRCI confirmed that about 28.8% of the Australian population held or had held crypto as of December 2021.
Success of Spot Bitcoin ETFs in Other Markets
Amid the surging interest among Australians, the success of spot Bitcoin ETFs in other major markets has undeniably influenced ASX’s decision. Notably, the spot Bitcoin ETFs in the United States have recorded $15.1 billion in positive capital netflows since they launched in January.
Moreover, Hong Kong also approved spot Bitcoin and Ethereum ETFs two months back. Despite not catching up to their U.S. counterparts in capital inflows, these investment products have witnessed significant interest from investors.
The launch of VBTC is expected to pave the way for more diversified crypto products on the ASX, as it sets a regulatory precedent for future approvals. Such a pattern is observed in the United States, where the launch of spot Bitcoin ETFs have influenced the approval of spot Ethereum ETFs.