Investors in Australia may soon gain a new way to gain exposure to bitcoin, as the country is poised for a surge in bitcoin ETFs.
The country’s main market operator, ASX, is on track to launch the country’s first Bitcoin-based ETFs by the end of 2024, Bloomberg reported Monday, citing sources.
The race is now on for Australia’s first Bitcoin ETF. Local firm BetaShares is reportedly developing a product for the ASX. Meanwhile, DigitalX Ltd. announced in February that it had submitted an application. VanEck, a major player in U.S. and European bitcoin ETFs, has also resubmitted its proposal. The move signals a competitive landscape for taking over the Australian market.
Global cryptocurrency boom encourages Australia to re-enter Bitcoin ETF market
This would not be Australia’s first attempt at Bitcoin ETFs. Two years ago, the smaller CBOE exchange launched, and Sydney-based Cosmos Asset Management offered a Bitcoin ETF. However, it had difficulty attracting investment and was delisted at the end of 2022.
Meanwhile, the Global X 21Shares Bitcoin ET F managed to secure about $62 million in assets. Attention now seems to be focused on the dominant ASX exchange. However, issuer Monochrome Asset Management is currently seeking approval for its Bitcoin ETFs from the CBOE.
The applications in Australia follow an increase in Bitcoin ETF assets under management to about $53 billion as of April 24 in the US. In addition, Hong Kong is preparing to launch long-awaited Bitcoin and Ethereum funds by the end of April. Trading in the Bosera-HashKey Capital ETF will begin on Tuesday.
BTC’s popularity spreads in Asia thanks to Hong Kong ETFs
Chinese asset managers are also preparing to launch bitcoin and Ether ETFs, reflecting the success of the highly lucrative three-month-old U.S. bitcoin funds.
Potential sources of demand for cryptocurrency ETFs in Hong Kong include Chinese assets invested in the city, as well as Asia-Pacific cryptocurrency exchanges and market makers.
Meanwhile, in the UK, the London Stock Exchange has announced its intention to begin accepting applications for cryptocurrency exchange-traded notes (ETNs) from April 8. ETNs and ETFs have similar characteristics and trade on major exchanges just like stocks.
