Australia is gearing up for a surge in Bitcoin exchange-traded funds (ETFs), following the footsteps of the US and Hong Kong. Key players such as Van Eck Associates Corp. and BetaShares Holdings Pty are lining up for listings, signaling a significant move in the country’s investment landscape.
ASX Ltd., handling the lion’s share of Australia’s equity trading, is anticipated to greenlight the first spot-Bitcoin ETFs for the main board before the end of 2024, according to Bloomberg‘s insider sources. These applications come on the heels of the staggering $53 billion amassed by US Bitcoin ETFs this year, with major players like BlackRock Inc. and Fidelity Investments leading the charge. Hong Kong also kickstarted trading in funds directly invested in Bitcoin and Ether this week.
Sydney-based BetaShares is actively working towards launching a product on the ASX, while DigitalX Ltd. has already lodged an application. VanEck, with successful ETF offerings in the US and Europe, resubmitted an application earlier this year.
Justin Arzadon, head of digital assets for BetaShares, emphasized the permanence of digital assets, citing the substantial inflows into US ETFs as proof. He revealed that BetaShares has reserved ASX tickers for spot-Bitcoin and spot-Ether ETFs.
The growing interest in crypto-based ETFs is not surprising given Australia’s $2.3 trillion pension market, which could significantly contribute to inflows. Approximately a quarter of the country’s retirement assets reside in self-managed superannuation programs, providing individuals with investment autonomy. Jamie Hannah, deputy head of investments and capital markets for VanEck Australia, believes these programs could emerge as major buyers of spot-crypto funds.
Lisa Wade, CEO of DigitalX, envisions Australians allocating up to 10% of their portfolios to cryptocurrencies, viewing them as potential “financial rails.”
As Australia prepares to embrace Bitcoin ETFs, the global trend towards mainstream acceptance of cryptocurrencies appears to be gaining momentum, promising new avenues for investors while navigating the uncertainties of this evolving landscape.
Read More: Australia prepares for Bitcoin ETFs wave amid global trend
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