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Australian Stock Exchange Set to Approve Spot Bitcoin ETFs by End of 2024

Australia’s major stock exchange, the Australian Securities Exchange (ASX), may soon give the green light to several spot Bitcoin exchange-traded funds (ETFs) before the close of 2024.

VanEck Australia and local ETF-focused fund manager BetaShares are poised to have their spot Bitcoin ETF applications approved by year-end, according to insiders cited by Bloomberg, mirroring moves made by fund issuers in the United States and Hong Kong.

The surge in spot Bitcoin ETF applications follows approvals in the United States, where a total of eleven products have amassed a staggering $53 billion in assets under management (AUM).

Justin Arzadon, BetaShares’ head of digital, credited the substantial inflows into U.S.-based ETFs as a catalyst for launching similar products in Australia, asserting they demonstrate the enduring presence of digital assets.

Jeff Yew, CEO of Monochrome, a crypto asset management firm with a competing exchange application, described Australia as a “very crypto-heavy country” and anticipates Australian spot Bitcoin ETFs to draw in $3 billion to $4 billion in net inflows within the initial three years.

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Yew highlighted the demand for Bitcoin ETFs among fund managers seeking exposure to Bitcoin, self-managed super fund (SMSF) investors, and a segment of retail investors.

Currently, SMSF investors carry direct exposure to Bitcoin on crypto exchanges, a practice Yew views as inherently risky, akin to a “ticking time bomb” should exchanges falter.

He emphasized the regulatory oversight and safety afforded by Bitcoin ETFs, contrasting them with direct crypto exchange exposure.

Monochrome initially sought approval for a spot Bitcoin ETF with the ASX in July 14, 2023, but shifted to Cboe Australia due to the ASX’s prolonged approval process.

Yew cited Cboe Australia’s more pragmatic timeline and transparent listing framework as reasons for the switch, noting the challenges the ASX has faced with regulatory issues and limited appetite for new products.

Despite this, Yew remains optimistic about Cboe Australia approving Monochrome’s application “within the next few weeks.”

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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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