The Australian Securities Exchange (ASX), responsible for the majority of trading volume in Australia, is expected to approve the country’s first Bitcoin Spot ETFs on ASX before the end of 2024.
Let’s read the news in detail below:
Bitcoin ETF Key Points-
- Major financial players, including Van Eck Associates Corp. and BetaShares Holdings Pty, are on the edge of their seats, awaiting approval from the Australian Securities Exchange (ASX) to list spot Bitcoin exchange-traded funds (ETFs) on the main board.
- The move follows spot Bitcoin ETFs’ remarkable success in the United States, where these investment vehicles have amassed an impressive $53 billion in assets this year alone.
- Australia’s decision to embrace spot Bitcoin ETFs aligns with significant gains in the broader cryptocurrency market. With Bitcoin hitting an all-time high of $72,689 on March 13, interest in digital assets has surged.
- Industry giants like BlackRock Inc. and Fidelity Investments have played a pivotal role, underscoring the growing demand for regulated cryptocurrency investment options.
According to recent reports, the ASX, commanding 80% of Australia’s stock trading volume, is poised to give the green light to these financial products by late 2024.
BREAKING: 🇦🇺 Australia to approve the spot #Bitcoin ETFs before the end of 2024: Bloomberg pic.twitter.com/pK7XadHhto
— Bitcoin Magazine (@BitcoinMagazine) April 29, 2024
Australia’s Unique Edge: Pension Sector and SMSFs
What sets Australia apart? Its robust pension sector is valued at a staggering $2.3 trillion, with approximately 25% of that wealth held in self-managed superannuation funds (SMSFs). These SMSFs empower individuals with greater control over their retirement savings, potentially positioning them as major players in the Bitcoin ETF market.
While this isn’t Australia’s first attempt at spot Bitcoin ETFs, it’s a critical moment. Two years ago, CBOE Australia introduced the country’s initial spot Bitcoin ETFs on a smaller exchange. Unfortunately, these offerings struggled to gain traction, leading Cosmos Asset Management to delist its Bitcoin ETF in 2022 due to lackluster inflows.
Despite past setbacks, industry experts remain optimistic about the bitcoin etf options and the listing on the ASX. Justin Arzadon, head of digital assets for BetaShares, emphasizes the importance of joining the renowned exchange and highlights token custody as a critical aspect scrutinized by the ASX.
Global Trends In Crypto: From Hong Kong To The US
Beyond Australia, the global landscape is evolving rapidly. The US and Hong Kong have already approved major spot Bitcoin ETFs. Recently Hong Kong ETH & Bitcoin ETF approval date was decided to be April 30th By SFC. The SEC’s approval of several US spot Bitcoin ETFs resulted in over $200 billion in volume within just three months.
Chinese asset managers are also gearing up to launch spot Bitcoin and Ether ETFs, mirroring the success of the highly lucrative three-month-old US Bitcoin funds. Meanwhile, in the UK, the London Stock Exchange plans to accept applications for trading crypto exchange-traded notes (ETNs) starting April 8. ETNs and ETFs share similar traits, trading on major exchanges akin to stocks.
In this Bitcoin Spot ETF News, Australia’s ASX embraces spot Bitcoin ETFs, it positions itself at the forefront of regulated exposure to this dynamic asset class, signaling a new era in crypto investment.
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