Australia’s primary securities trading venue, the Australian Securities Exchange (ASX), stands on the verge of approving multiple spot Bitcoin exchange-traded funds (ETFs) by the end of 2024. This initiative mirrors the growing global trend of embracing digital asset investments, with similar products already available in the United States and Hong Kong.
Rising Demand for Cryptocurrency Investment Options
Spurred by the success of these funds in the U.S., where they have amassed about $53 billion in assets under management across eleven products, the move to introduce spot Bitcoin ETFs in Australia is gaining momentum. Industry insiders, including executives from VanEck Australia and BetaShares, expect regulatory approval for their ETF applications within the year, indicating strong market readiness for such products.
Also Read: Monochrome’s Spot ETF to Debut in Australia Till Mid-2024
Potential Market Impact
Jeff Yew, CEO of Monochrome, a crypto asset management firm, projects that the introduction of spot Bitcoin ETFs could attract significant investment in Australia. He estimates that these ETFs could draw between $3 billion to $4 billion in net inflows over the first three years. Furthermore, Yew attributes this potential market growth to high interest from fund managers, self-managed super fund (SMSF) investors, and retail buyers seeking safer ways to invest in cryptocurrencies.
Yew underscores the importance of providing a secure investment vehicle for SMSF investors who currently face risks associated with direct cryptocurrency holdings on exchanges. By introducing heavily regulated spot Bitcoin ETFs, the ASX would offer a much safer alternative for accessing digital assets, effectively mitigating the inherent risks present in the existing unregulated frameworks.
