Learn about the anticipated approval of spot Bitcoin exchange-traded funds (ETFs) in Australia and the potential impact on the market. With significant inflows expected, the move reflects growing confidence in digital assets among investors and regulatory bodies.
Australia's financial landscape is poised for significant development as the Australian Securities Exchange (ASX) prepares to approve several spot Bitcoin exchange-traded funds (ETFs) by the end of the year. Building on the success of similar products in the United States and Hong Kong, this move could bring billions of dollars in inflows into the Australian crypto market.
Key players like VanEck Australia and BetaShares are among those seeking approval for Bitcoin ETFs, encouraged by the success of similar products in the U.S. market, where over $53 billion in assets under management (AUM) has been accumulated across multiple offerings. Justin Arzadon, head of digital at BetaShares, sees this as a validation of digital assets' staying power and expects strong demand in Australia.
According to Jeff Yew, CEO of Monochrome, a crypto asset management firm, Australia's robust interest in cryptocurrencies could translate into $3 billion to $4 billion in net inflows within the first three years of Bitcoin ETF availability. Yew highlights the appeal of ETFs for fund managers seeking regulated exposure to Bitcoin as well as self-managed super fund (SMSF) investors looking for safer alternatives to direct crypto exchange exposure.
Yew's firm, Monochrome, initially applied for a spot Bitcoin ETF with the ASX but later switched to Cboe Australia due to a more streamlined approval process. Despite challenges faced by the ASX in recent times, Yew remains optimistic about approval on Cboe Australia, expecting it "within the next few weeks."
Overall, the imminent approval of spot Bitcoin ETFs in Australia underscores the growing acceptance of digital assets within the country's financial ecosystem, paving the way for increased participation from institutional and retail investors alike.
(TOM MITCHELHILL, COINTELEGRAPH, 2024)