Australia Prepares for a Wave of Spot-Bitcoin ETF Launches: Bloomberg
Australia is poised to witness a surge in spot-Bitcoin exchange-traded fund (ETF) launches, following in the footsteps of the United States and Hong Kong.
According to Bloomberg, major issuers such as Van Eck Associates Corp. and BetaShares Holdings Pty are lining up for listings on the Australian Securities Exchange (ASX).
Key points:
- The ASX is anticipated to approve the first spot Bitcoin ETFs for its main board by the end of 2024
- Issuers are looking to profit from the recent dramatic cryptocurrency bounce.
- The U.S. spot-Bitcoin ETFs have amassed $53 billion in assets this year, including offerings from BlackRock Inc. and Fidelity Investments.
- BetaShares and DigitalX Ltd. have confirmed their efforts to launch spot-Bitcoin ETFs on the ASX.
- VanEck, which provides identical ETFs in the United States and Europe, renewed its application in February.
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Justin Arzadon, head of digital assets for BetaShares, believes that the significant inflows into U.S. spot-Bitcoin ETFs “prove digital assets are here to stay.” The company has also reserved ASX tickers for both spot-Bitcoin and spot-Ether ETFs.
Australia’s pension market could drive Bitcoin ETF inflow
Australia’s $2.3 trillion pension market is expected to play a significant role in driving inflows into spot-crypto ETFs. Approximately a quarter of the country’s retirement assets are held in self-managed superannuation programs.
These self-managed super funds constitute a sizable addressable market for spot-Bitcoin ETFs, according to Jamie Hannah, deputy head of investments and capital markets for VanEck Australia.
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This latest wave of spot-Bitcoin ETF applications follows the initial listings on CBOE Australia, the country’s junior bourse, two years ago.
Lisa Wade, CEO of DigitalX, believes that Australians could allocate up to 10% of their portfolios to cryptocurrencies, given their potential as “financial rails.” However, she cautioned that the recent buzz around the debut of U.S. spot-Bitcoin ETFs, which drove Bitcoin to an all-time high in mid-March, has since waned.
