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Australia Rides Crypto Wave, to Approve Bitcoin ETF

News Desk 29 April 2024

1 minute read

The Australian Securities Exchange (ASX), a significant player in the nation’s equity market, is anticipated to greenlight the first spot-Bitcoin (BTC) exchange-traded funds (ETFs) by the close of 2024.

Among the entities seeking approval, DigitalX Ltd. initiated the process in February, as per the report. VanEck also joined the race, resubmitting its application in February and announcing its intentions just last month. Additionally, Sydney-based BetaShares informed Bloomberg of its active pursuit in bringing a product to the ASX.

Regarding ASX’s stance, the exchange reiterated its position shared in January, stating it couldn’t offer additional insights beyond its previous communication. ASX previously emphasized its policy of not commenting on investment product applications but affirmed ongoing discussions with several issuers interested in introducing crypto-asset-based ETFs.

The surge in momentum for Bitcoin ETFs across Asia, following approvals in the United States, is palpable. In fact, Hong Kong has recently made headlines by officially endorsing the first batch of spot Bitcoin and Ethereum ETFs. After obtaining initial approval on April 15, six funds are set to be officially listed on April 30.

According to Bloomberg’s senior ETF analyst Eric Balchunas, Hong Kong’s endorsement marks a significant positive development for the crypto industry, even though its scale is anticipated to be considerably smaller than that of the U.S.

In Australia, the landscape continues to evolve rapidly. Monochrome Asset Management, based in Australia, has filed for a spot Bitcoin ETF with Cboe Australia, a global listing exchange and ASX competitor. Monochrome’s choice of Cboe Australia was strategic, highlighting the exchange’s expertise across Asia and its wider investor reach.

As countries like Hong Kong, the UAE, and now Australia embrace cryptocurrency ETFs, it’s evident that they’re recognizing the enduring potential of this sector and are poised to ride the crypto wave into the future.