Australian players aim to mirror the success of spot Bitcoin ETFs seen in the US by focusing on the $2.3 trillion pension market for investment inflows. They’re betting on attracting significant investments from this market to replicate the achievements observed across the Pacific.
Following a strong reception to the debut of spot Bitcoin ETFs in the United States earlier this year, issuers are turning their attention to the Australian market. Companies like Van Eck Associates Corp. and BetaShares Holdings Pty are preparing to introduce spot Bitcoin ETF listings in Australia, aiming to replicate the success witnessed in the US.
ASX Likely to Approve Australia’s First Spot Bitcoin ETFs
According to insiders, ASX Ltd., a significant player in Australia’s equity trading scene, is expected to greenlight the country’s inaugural spot Bitcoin ETFs for the main board by the close of 2024. The sources, requesting anonymity, disclosed this development, highlighting the confidential nature of the information.
BetaShares, headquartered in Sydney, is actively advancing towards introducing a product on the ASX, as confirmed by a spokesperson. DigitalX Ltd., another local entity, announced its application submission in February, while VanEck, renowned for similar ETFs in the US and Europe, resubmitted its application during the same month.
Justin Arzadon, BetaShares’ head of digital assets, stressed the validation of digital asset demand by the influx of funds in the US. Arzadon also disclosed that the company has secured ASX tickers for spot Bitcoin and spot Ether ETFs, affirming their dedication to expanding digital asset offerings. He emphasized ASX’s scrutiny on token custody before granting approval.
The success of US Bitcoin ETFs, amassing a staggering $53 billion this year, including offerings from BlackRock Inc. and Fidelity Investments, has spurred multiple applications. Furthermore, funds directly investing in Bitcoin and Ether are set to kick off trading in Hong Kong starting Tuesday.
Bitcoin ETFs Eyeing Australia’s Massive Pension Market
Bitcoin ETF issuers are setting their sights on attracting investments from Australia’s substantial $2.3 trillion pension market, according to reports.
About a quarter of the country’s retirement assets reside in self-managed superannuation programs, allowing individuals to choose their investments independently. Jamie Hannah, deputy head of investments and capital markets at VanEck Australia, suggests that these programs could potentially become purchasers of spot-crypto funds.
Hannah further explained that with the inclusion of self-managed super funds, brokers, financial advisers, and platform money, there exists a significant market capable of boosting the ETF’s size substantially.
While this isn’t the first attempt at introducing spot Bitcoin ETFs in Australia, it marks a significant endeavor. In 2022, Sydney-based Cosmos Asset Management launched a spot Bitcoin ETF, only to delist it later due to modest inflows. Another BTC ETF, Global X 21Shares, launched the same year, managing over $62 million in assets.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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