Australia Poised for Surge in Spot-Bitcoin ETF Launches Following US and Hong Kong Trend
Australia is set to experience a surge in spot-Bitcoin exchange-traded fund (ETF) launches, following the lead of the United States and Hong Kong. Major issuers such as Van Eck Associates Corp. and BetaShares Holdings Pty are gearing up for listings on the Australian Securities Exchange (ASX), according to Bloomberg.
The ASX is expected to approve the first spot Bitcoin ETFs for its main board by the end of 2024, as issuers look to capitalize on the recent cryptocurrency bounce. In the U.S., spot-Bitcoin ETFs have already amassed $53 billion in assets this year, with offerings from BlackRock Inc. and Fidelity Investments.
BetaShares and DigitalX Ltd. have confirmed their plans to launch spot-Bitcoin ETFs on the ASX, while VanEck has renewed its application for identical ETFs in Australia. Justin Arzadon, head of digital assets for BetaShares, believes that the inflows into U.S. spot-Bitcoin ETFs demonstrate the staying power of digital assets.
Australia’s $2.3 trillion pension market is expected to drive significant inflows into spot-crypto ETFs, with a quarter of the country’s retirement assets held in self-managed superannuation programs. This presents a sizable market for spot-Bitcoin ETFs, according to Jamie Hannah of VanEck Australia.
The recent wave of spot-Bitcoin ETF applications in Australia follows the initial listings on CBOE Australia two years ago. Lisa Wade, CEO of DigitalX, believes that Australians could allocate up to 10% of their portfolios to cryptocurrencies, viewing them as potential “financial rails.” However, she notes that the excitement surrounding the debut of U.S. spot-Bitcoin ETFs has since subsided.
Overall, the launch of spot-Bitcoin ETFs in Australia is poised to bring new opportunities for investors and further solidify the presence of digital assets in the financial market.
By Vignesh Karunanidhi, Milk Road Writer.
