Australian Securities Exchange Anticipates Green Light for Bitcoin ETFs by Year-End
Summary:
The Australian Securities Exchange (ASX) is expected to approve several Bitcoin (BTC) spot exchange-traded funds (ETFs) by the end of the year. Following successful U.S. Bitcoin ETFs, applications from VanEck Australia and BetaShares are likely to be approved. Jeff Yew, CEO of crypto asset management firm Monochrome, anticipates Australian spot Bitcoin ETFs to pull in $3bn-$4bn net inflows in the first three years. Bitcoin ETFs provide heavily regulated and safer exposure to Bitcoin, especially benefiting self-managed super fund (SMSF) investors.
The Australian Securities Exchange (ASX), the country's largest trading platform, might approve several Bitcoin (BTC) spot exchange-traded funds (ETFs) before the year ends. Taking cues from fund issuers from the United States and Hong Kong, applications from VanEck Australia and local ETF-centric fund manager BetaShares are likely to get the nod, according to unnamed insiders. This surge in BTC spot ETF applications follows the sanctioning of Bitcoin ETFs in the US, from which about $53 billion in assets under management (AUM) have been gathered across eleven separate entities. According to Justin Arzadon, head of digital at BetaShares, substantial US-based inflows have bolstered the confidence to introduce these products in Australia, further solidifying the position of digital assets. Jeff Yew, CEO of Monochrome, a rival crypto asset management company, highlighted Australia's robust crypto climate, anticipating Australian spot BTC ETFs to trigger $3 billion to $4 billion in net inflows in the initial three years. Yew reasoned that the demand will chiefly come from fund managers aspiring to gain Bitcoin exposure, followed by self-managed super fund (SMSF) investors and, to a lesser extent, retail patrons. Currently, SMSF investors maintain direct exposure to Bitcoin via crypto exchanges, which poses inherent risks. Yew relates it to a "ticking time bomb" should the exchanges fail. Bitcoin ETFs, however, provide these investors with a heavily regulated and thereby safer exposure to the asset class, added Yew. Monochrome first submitted a spot BTC ETF application to ASX in July of the previous year, but later opted for Cboe Australia, a lesser-known exchange, due to ASX's prolonged approval procedures. Yew anticipates Cboe Australia to sanction his firm's application in a few weeks' time.
Published At
4/29/2024 8:44:46 AM
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