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Australian Securities Exchange (ASX) set to list first batch of spot Bitcoin ETFs

By:
on Apr 29, 2024
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  • Spot Bitcoin ETF trend grows in Asia post-U.S., HK approvals.
  • ASX to list first spot Bitcoin ETFs by 2024 end.
  • ASX expected to list DigitalX, VanEck, and BetaShares Bitcoin ETFs as Monochrome opts for Cboe Australia.

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The Australian Securities Exchange (ASX) is gearing up to list its first batch of approved spot Bitcoin exchange-traded funds (ETFs). According to Bloomberg, ASX is anticipated to list the spot Bitcoin ETFs before the end of 2024.

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ASX’s move into the cryptocurrency space is a significant development seeing that it handles around 80% of local trades with a market capitalization of $2.7 trillion. It will now compete against Cboe Australia, which has been offering spot Bitcoin and Ethereum ETFs trading to Australian traders since 2022.

The race to file Bitcoin ETF applications

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Four prominent entities, namely DigitalX Ltd., VanEck Australia, BetaShares, and Monochrome Asset Management, have filed applications and expressed intentions for spot Bitcoin ETFs, seeking to capitalize on the growing demand for regulated exposure to digital assets within Australia’s investment landscape.

While DigitalX Ltd., VanEck Australia, and BetaShares are seeking to have their spot Bitcoin ETFs listed on ASX, Monochrome Asset Management has switched and is now seeking to have its spot Bitcoin ETF listed on Cboe Australia.

DigitalX Ltd., a local entity, initiated the process by filing its application in February, signaling its proactive stance in embracing emerging investment opportunities.

Similarly, VanEck Australia, a renowned global investment management firm, reaffirmed its commitment to the Australian market by resubmitting its application in February, following in the footsteps of its successful ventures in other jurisdictions.

BetaShares, a Sydney-based ETF provider, also entered the fray by expressing its intention to launch a spot Bitcoin ETF on the ASX, further diversifying its portfolio offerings to cater to the evolving needs of Australian investors.

The Australia-based Monochrome Asset Management had first applied for a spot Bitcoin ETF with the ASX on July 14 last year. It later switched to Cboe Australia, a smaller rival of ASX, citing slow approval process at the ASX.

If the applications are approved, these four entities will join Global X 21Shares, which has been the solo spot crypto ETFs issuer in Australia since 2022, with its Bitcoin and Ethereum ETFs listed on the Cboe Australia.

Rise of Spot Bitcoin ETFs in Asia

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The momentum for spot Bitcoin ETFs has been gaining traction in Asia following the regulatory approvals in the United States and Hong Kong.

With the successful introduction of 11 spot Bitcoin ETFs in the U.S. market in January, which have collectively amassed over $53.16 billion in total net assets, investor interest in similar products has surged across other regions including Asia.

Hong Kong, in particular, has emerged as a promising market for cryptocurrency investments in Asia, with the recent approval of the first batch of spot Bitcoin and Ether ETFs signalling a significant milestone in the region’s financial landscape.

Despite the estimated size of the Hong Kong market being smaller compared to the U.S., the approval of six crypto ETFs earlier this Month underscores the growing acceptance of digital assets among investors and regulators alike.

As investors seek diversified investment opportunities amidst ongoing market volatility, the introduction of spot Bitcoin ETFs in key financial markets provides a regulated avenue for accessing the burgeoning cryptocurrency market, heralding a new era of mainstream adoption and integration within traditional investment portfolios.

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