Australia Poised to Introduce Spot Bitcoin ETFs by 2024
The Australian Securities Exchange (ASX) is anticipated to approve its first spot Bitcoin exchange-traded funds (ETFs) by the end of 2024. This development is part of a broader acceptance of cryptocurrency-based financial products within the Asia-Pacific region. Several companies, including DigitalX Ltd., VanEck, BetaShares, and Monochrome Asset Management, have submitted applications to launch their spot Bitcoin ETFs on the ASX. These products would provide investors with a regulated means of gaining exposure to Bitcoin without directly purchasing and storing the digital asset.
The potential approval by the ASX, which manages about 80% of trades in the Australian equity market, follows in the footsteps of the United States and Hong Kong. The US Securities and Exchange Commission (SEC) has already approved multiple Bitcoin ETF applications, and Hong Kong is poised to begin trading its first spot Bitcoin and Ethereum ETFs by April 30, 2024. The interest in cryptocurrency ETFs across global markets is growing, with jurisdictions like South Korea and Japan also considering similar offerings.
This interest in crypto ETFs comes despite recent financial fluctuations, including a $218 million withdrawal from Bitcoin ETFs linked to a slowing US economy and concerns about stagflation affecting Bitcoin and Ether prices. Nevertheless, the launch of these financial products reflects an increasing demand for investment vehicles that provide exposure to digital assets within regulated markets. The potential approval of Bitcoin ETFs in Australia would mark a significant milestone in the integration of cryptocurrencies into mainstream financial services.
