After an overwhelming response to the launch of the spot Bitcoin ETFs in the United States this January, issuers are now eyeing the Australian market. Van Eck Associates Corp. and BetaShares Holdings Pty have lined up for the listing of spot Bitcoin ETFs in Australia.
Australia to Approve Spot Bitcoin ETFs
According to sources familiar with the matter, ASX Ltd., a key player in Australia’s equity trading landscape, is likely to greenlight the country’s first spot-Bitcoin ETFs for the main board by the end of 2024. The individuals, who preferred to remain anonymous due to the confidentiality of the information, disclosed this development.
BetaShares, headquartered in Sydney, is actively progressing towards the launch of a product on the ASX, as stated by a spokesperson during an interview. Additionally, DigitalX Ltd., another local entity, announced in its half-year results in February that it had submitted an application. Meanwhile, VanEck, known for offering similar ETFs in the US and Europe, resubmitted its application in February.
Justin Arzadon, head of digital assets for BetaShares, emphasized that the influx of funds in the US validates the demand for digital assets. Arzadon further revealed that the company has reserved ASX tickers for spot-Bitcoin and spot-Ether ETFs, underscoring their commitment to expanding their offerings in the digital asset space. He further added that ASX would be scrutinizing the custody of tokens before giving any sort of approval.
Following the success of US Bitcoin ETFs, which have accumulated a staggering $53 billion this year, including those from BlackRock Inc. and Fidelity Investments, several applications have been submitted. Additionally, funds directly investing in Bitcoin and Ether are slated to commence trading in Hong Kong starting Tuesday.
Tapping The $2.3 Trillion Pension Market In Australia
As per reports, the Bitcoin ETF issuers would be trying to attract inflows from Australia’s massive $2.3 trillion pension market.
Approximately a quarter of the country’s retirement assets are held in self-managed superannuation programs, where individuals have the autonomy to select their investments. Jamie Hannah, deputy head of investments and capital markets for VanEck Australia, suggests that these programs could potentially become purchasers of spot-crypto funds.
Hannah elaborated that with the inclusion of self-managed super funds, brokers, financial advisers, and platform money, there exists a sizable addressable market capable of bolstering the size of the ETF to a sufficient extent.
This is not the first time that spot Bitcoin ETFs are coming to Australia. Back in 2022, Sydney-based Cosmos Asset Management launched a spot Bitcoin ETF. However, citing meager inflows, it decided to delist it later. Another BTC ETF – Global X 21Shares – which launched the same year has over $62 million in assets under management.
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