The Australian Securities Exchange (ASX) may commence trading of spot exchange-traded funds (ETFs) based on the leading cryptocurrency by the end of 2024, according to Bloomberg.
Applications for these products have been submitted by asset managers VanEck Australia, BetaShares, and DigitalX.
Justin Arzadon, head of digital assets at BetaShares, stated that the firm is preparing its bitcoin ETF for listing on the ASX and has already reserved tickers. The influx of investments in the instrument in the US “proves that cryptocurrencies are here to stay,” he added.
A representative from ASX mentioned “ongoing engagement with several issuers interested in launching digital asset-based ETFs,” but did not specify any timelines.
Australia’s pension market, valued at $2.3 trillion, could facilitate fund inflows, the article notes. About a quarter of the country’s similar assets are in self-managed programs, allowing individuals to choose their investment products.
Jamie Hannah, deputy head of investments and capital markets at VanEck Australia, suggested that participants in the pension program could potentially become buyers of spot crypto funds.
Australians are capable of allocating up to 10% of their portfolio to cryptocurrencies, considering their potential as “financial rails,” noted DigitalX CEO Lisa Wade.
The new applications represent a second wave of spot bitcoin ETFs in the country. In 2022, Sydney-based Cosmos Asset Management launched a product on CBOE Australia, but later delisted it due to low demand.
In the same year, 21Shares launched its exchange-traded fund based on the leading cryptocurrency in Australia, managing assets worth approximately $62 million.
ASX is significantly larger than CBOE Australia, leading issuers of new instruments to hope for much greater inflows.
Earlier in April, the Hong Kong Securities and Futures Commission approved applications from Boshi International, HashKey Capital, China Asset Management, and Harvest Investment to launch spot bitcoin and Ethereum ETFs. Trading is scheduled to begin on April 30.
Bloomberg analyst Eric Balchunas stated that cryptocurrency ETFs listed in Hong Kong would be “lucky” to collectively attract $500 million. The expert called Matrixport’s projected $25 billion “insane.”