Australia’s largest stock exchange, the Australian Securities Exchange (ASX), is reportedly set to approve several spot Bitcoin exchange-traded funds (ETFs) by the end of 2024.
Following the lead of fund issuers in the United States and Hong Kong, VanEck Australia and local ETF-focused fund manager BetaShares are expected to have their applications approved, according to anonymous sources cited by Bloomberg.
Australian Securities Exchange: Confidence in Launch of Bitcoin Spot ETFs
ASX, which manages about 80% of local trades in Australia and boasts a domestic market capitalization of $2.7 trillion as of March 2024, is seen as a key platform for the introduction of these ETFs.
A spokesperson for the exchange told Bloomberg that ASX “continues to engage with a number of issuers that are interested in admitting cryptoasset based ETFs.”
It is important to note that VanEck, BetaShares, and DigitalX are among the issuers that have already submitted their ETF applications to ASX earlier this year.
Justin Arzadon, head of digital at BetaShares, expressed confidence in the launch of these products, stating that the success of U.S.-based ETFs has proven the lasting presence of digital assets.
Notably, the move comes after the success of Bitcoin ETFs in the United States, which have accumulated around $53 billion in assets under management (AUM) across 11 separate products.
Rival’s Previous Fund Closures
Meanwhile, CBOE Australia has been offering spot Bitcoin ETFs since 2022, with the Global X 21Shares Bitcoin ETF being the sole spot Bitcoin fund in Australia currently listed.
Monochrome, a digital asset management firm, initially applied for a spot Bitcoin ETF with ASX in July 2023 but later switched to CBOE Australia due to a slow approval process.
Jeff Yew, CEO of Monochrome, explained the decision, citing CBOE’s more realistic timeframe and transparent listing framework. Despite the challenges faced by ASX in the regulatory process, Yew expects CBOE Australia to approve his firm’s application soon.
In a broader context, Hong Kong is also gearing up for its first line of spot Bitcoin ETFs, with a few funds set to be listed on April 30 after receiving initial approval earlier this month.
Although Hong Kong’s market size is smaller compared to the U.S., the approval is seen as a significant positive development for the digital asset.
Australia’s Bitcoin Adoption and ATM Installations
Australia has seen a significant increase in Bitcoin adoption in recent years, largely fueled by favorable digital asset regulations.
The country recently reached a milestone by becoming the third-largest host for Bitcoin ATMs, joining the United States and Canada with over 1,000 active BTC-fiat machines, according to data from Coin ATM Radar on April 24.
With a network of 1,008 Bitcoin ATMs, Australia now accounts for 2.7% of the global digital asset ATM distribution. The rapid surge in Bitcoin ATMs across the country mirrors the growing national interest in the digital asset.
Interestingly, around 1 in 4 adults in Australia now own digital assets, according to Statista data, indicating a significant increase in trading volumes on exchanges and a spike in daily active users of wallet apps.
