Australia Poised to Approve Spot Bitcoin ETFs, Anticipating Billions in Inflows
Australian investors have been actively trading spot bitcoin ETFs since 2022, with offerings currently listed on CBOE Australia.
Australia's largest stock exchange, the Australian Securities Exchange (ASX), may soon approve several spot Bitcoin exchange-traded funds (ETFs) by the end of the year, according to Bloomberg reports. Following the footsteps of the United States and Hong Kong, fund issuers such as VanEck Australia and BetaShares are to receive approval for their Bitcoin ETF applications.
The decision comes amid the resounding success of Bitcoin ETFs in the United States, where these investment vehicles have amassed a staggering $53 billion in assets under management (AUM) across multiple products. This track record has instilled confidence among Australian fund issuers, validating the long-term viability of digital assets in investment portfolios.
Justin Arzadon, the head of digital at BetaShares, emphasized the importance of this development in proving the enduring presence of digital assets in the financial space. He noted that the substantial inflows into U.S.-based Bitcoin ETFs have bolstered confidence in launching similar products in Australia, catering to a diverse investor base.
Jeff Yew, CEO of crypto asset management firm Monochrome, anticipates a robust demand for Australian spot Bitcoin ETFs, projecting net inflows of $3 billion to $4 billion within the first three years. Yew highlighted the appeal of these ETFs to various investor segments, including fund managers seeking exposure to Bitcoin, self-managed super fund (SMSF) investors, and retail investors.
Monochrome's journey to secure approval for its spot Bitcoin ETF underscores the evolving dynamics within Australia's financial ecosystem. Initially applying to the ASX, the firm later shifted its focus to Cboe Australia due to a more streamlined approval process and transparent listing framework.
Despite challenges faced by traditional exchanges like ASX, the appetite for innovative financial products remains robust. Yew remains optimistic about Cboe Australia's approval of Monochrome's application in the coming weeks, signaling a broader shift towards embracing digital asset investment opportunities in Australia.
