Spot Bitcoin ETF Issuers Eyeing Australian Market Following US Success
Following the huge response to the launch of spot Bitcoin ETFs in the United States this January, issuers are now turning their sights to the Australian market. Van Eck Associates Corp. and BetaShares Holdings Pty are lined up to list spot Bitcoin ETFs in Australia.
Australia to Approve Spot Bitcoin ETFs
ASX Ltd., a major player in Australia’s stock trading landscape, will likely give the green light to the main board of the country’s first spot Bitcoin ETFs by the end of 2024, according to people familiar with the matter. He explained this development due to the confidentiality of the information.
BetaShares, which is headquartered in Sydney, is actively moving towards launching a product on the ASX, as stated by a spokesperson during the interview. Additionally, another local organization, DigitalX Ltd. announced that it had applied during the semester results in February. Meanwhile, VanEck, known for offering similar ETFs in the U.S. and Europe, resubmitted its application in February.
Justin Arzadon, head of digital assets at BetaShares, emphasizes that the flow of funds in the US confirms the demand for digital assets. Arzadon also underlined that the company has reserved ASX tickets for spot Bitcoin and spot Ether ETFs and is committed to expanding its offerings in the digital asset space. He also added that the ASX would review custody of the tokens before granting any approval.
Following the success of US Bitcoin ETFs, which have raised a staggering $53 billion this year, BlackRock Inc. and Fidelity Investments. Additionally, funds that invest directly in Bitcoin and Ether are scheduled to begin trading in Hong Kong starting Tuesday.
Taking Advantage of the $2.3 Trillion Superannuation Market in Australia
Bitcoin ETF issuers will seek to attract inflows from Australia’s massive $2.3 trillion superannuation market, according to reports.
About a quarter of the nation’s retirement assets are held in self-directed retirement programs, where individuals have the autonomy to choose their own investments. Jamie Hannah, vice president of investment and capital markets at VanEck Australia, suggests these programs could potentially be buyers of spot crypto funds.
Hannah explained that with the inclusion of self-managed super funds, brokers, financial advisors and platform money, a sizeable addressable market emerges that could adequately increase the size of the ETF.
This isn’t the first time spot Bitcoin ETFs have arrived in Australia. Sydney-based Cosmos Asset Management launched a spot Bitcoin ETF in 2022. However, he later decided to remove it from the list, citing insufficient entries. Another BTC ETF launched the same year – Global X 21Shares – has over $62 million in assets under management.
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Bhushan is a FinTech enthusiast and has a good ability to understand financial markets. His interest in economics and finance draws his attention to the emerging Blockchain Technology and Cryptocurrency markets. He is in a constant learning process and motivates himself by sharing the knowledge he has acquired. In her spare time, she reads thriller novels and sometimes explores her culinary skills.
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