Australia is gearing up for a major breakthrough in the world of cryptocurrency as it plans to embrace a wave of Bitcoin exchange-traded funds (ETFs). Following in the footsteps of successful launches in the US and soon-to-be in Hong Kong, the Australian financial sector is poised for significant changes. With prominent issuers leading the way, experts predict a shift in cryptocurrency investment patterns on the continent.
Australia’s primary securities exchange, ASX Ltd., is considering approving its first spot Bitcoin ETFs. Sources suggest that these approvals could happen before the end of 2024. In Sydney, BetaShares is actively working towards launching its spot Bitcoin and Ethereum ETFs on the ASX, while DigitalX Ltd. has already submitted an application for approval. Meanwhile, VanEck, a renowned player in the ETF market, has reentered the Australian market by submitting a fresh application.
The resurgence of interest in crypto ETFs in Australia is not just a fad; it is driven by the robust $2.3 trillion pension sector in the country. Approximately a quarter of Australia’s retirement assets are held in self-managed superannuation funds, which offer investors the flexibility to diversify into cryptocurrencies. This potential demand from self-directed funds could greatly contribute to the success of the proposed ETFs.
However, launching ETFs in Australia is not without challenges. Past attempts to launch spot Bitcoin ETFs had mixed results. While Cosmos Asset Management’s ETF was short-lived and delisted due to low investor interest, the Global X 21Shares Bitcoin ETF continues to manage assets worth around $62 million. Nonetheless, the enthusiasm for ETFs in the US, where they have accumulated $53 billion in assets since their launch, serves as an encouraging milestone.
Australia’s moves towards Bitcoin ETFs have drawn attention from the international financial community. This launch could determine if cryptocurrencies are seen as a viable investment asset for mainstream investors. In addition to traditional financial hubs, Hong Kong is also preparing for the launch of funds investing directly in Bitcoin and Ethereum, further fueling global interest in this new investment avenue.