The Australian Securities Exchange (ASX) is reportedly considering approving several spot Bitcoin exchange-traded funds (ETFs) by the end of 2024, following trends seen in the United States and Hong Kong.
VanEck Australia and BetaShares, both ETF-focused fund managers, are among the applicants awaiting approval for spot Bitcoin ETFs from the ASX, according to anonymous sources familiar with the matter cited by Bloomberg.
The approval of Bitcoin ETFs in the United States, which have accumulated around $53 billion in assets under management (AUM) across eleven products, has instilled confidence in launching similar products in Australia. Justin Arzadon, the head of digital at BetaShares, noted that this demonstrates the enduring presence of digital assets.
Jeff Yew, CEO of Monochrome, a crypto asset management firm, anticipates significant demand for Australian spot Bitcoin ETFs, estimating net inflows of $3 billion to $4 billion within the first three years. This demand is expected to come from fund managers seeking exposure to Bitcoin, self-managed super fund (SMSF) investors, and retail investors.
Yew highlights the inherent risks of direct exposure to Bitcoin on crypto exchanges for SMSF investors and emphasizes the safety and regulatory oversight provided by Bitcoin ETFs.
Monochrome initially applied for a spot Bitcoin ETF with the ASX but switched to Cboe Australia due to a slow approval process. Yew suggests that Cboe offers a more realistic timeframe and transparent listing framework, indicating challenges with the ASX’s approval process and regulatory environment.
Despite challenges, Yew anticipates Cboe Australia to approve Monochrome’s application in the coming weeks, providing investors with regulated exposure to Bitcoin.
The potential approval of spot Bitcoin ETFs in Australia reflects growing interest and confidence in digital assets among investors and regulators, offering a regulated and safer avenue for exposure to Bitcoin.
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