Bitcoin ETF hits Australia after $53 billion grab

The Australian finance market is prepared to witness a surge in Bitcoin exchange-traded fund (ETF) launches, similar to those in the US and Hong Kong. The country’s major players, including Van Eck Associates and BetaShares Holdings, are preparing to list their Bitcoin ETFs on the Australian Securities Exchange (ASX).

Sources familiar with the matter said the ASX, which accounts for about 80% of equity trading in the country, is expected to give its approval for the first spot-Bitcoin ETFs to be listed on its main board before the end of this year. This comes as issuers seek to capitalize on a recent crypto rally that saw Bitcoin hit a record high of nearly $74,000 last month.

The applications for Bitcoin ETFs in Australia follow those launched in the US. This year, American Bitcoin ETFs have attracted $53B in assets under management, including offerings from industry giants such as BlackRock and Fidelity Investments. In addition, funds investing directly in Bitcoin and Ether are set to start trading in Hong Kong on Tuesday, April 30.

DigitalX disclosed its application to establish a Bitcoin ETF in February when it released its half-year results. BetaShares’ announcement that it had reserved ASX tickers for spot-Ether and spot-Bitcoin ETFs while it pursued regulatory approval boosted expectations.

BetaShares head of digital assets Justin Arzadon said that inflows into US Bitcoin ETFs were “proof that digital assets are here to stay.

Australia’s AUD2.3tn ($1.7tn) pension market could attract large amounts of money into these products backed by cryptocurrency. According to VanEck Australia’s deputy head of investments and capital markets, Jamie Hannah, self-managed superannuation funds, where individuals can choose their own investments, hold about 25% of retirement assets. 

Low inflows and delistings hampered previous attempts to list spot Bitcoin ETFs on the smaller rival CBOE Australia exchange, but the industry is optimistic about the ASX’s prospects of hosting these products.

The ASX is investigating token custody, among other things. Australia looks set to follow the US trend towards Bitcoin ETFs as the crypto industry continues to evolve and gain acceptance, offering investors a regulated and accessible way to tap into this burgeoning asset class.