Exchange-traded funds (ETFs) tracking the first cryptocurrency could inflict “real harm” on consumers and markets. That conclusion is contained in the consultative report of the Australian Securities and Investments Commission (ASIC).
In the document, the regulator allowed listing of such products on ASX subject to proper safeguards. Officials stressed that to maintain market integrity, bitcoin ETFs should be “carefully developed and regulated”.
Overall, the ASIC believes that the unique features of Bitcoin ETFs require study to assess their compliance with the regulatory framework and their ability to sustain fair, transparent and orderly pricing.
Earlier in February, the Commission stated that it had no objections to Cosmos Capital’s Bitcoin ETF.
Currently, trading of Bitcoin ETFs has been permitted by regulators Canada and Brazil.
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