Key Takeaways:
The launch of the Bitcoin spot exchange-traded funds (ETFs) in the US has been instrumental in attracting traditional investors into the crypto market and even propelling the price of the world’s largest cryptocurrency to an all-time high of nearly $74,000 in the lead-up to its quadrennial halving event.
Since their launch in January, the BTC-backed funds have accounted for 8.4% of the total ETF trading volume in the United States. To date, the ETFs have accumulated an impressive $53 billion in assets under management (AUM).
Global asset management giants BlackRock and Fidelity who listed their spot BTC ETFs – IBIT and FBTC – in the US, together manage over $2.6 billion worth of Bitcoin, making them the issuers of the largest crypto-backed funds in the US.
Bitcoin spot ETFs have since then been approved in Hong Kong and are set to begin trading in the city-state on Tuesday, April 30th, 2024.
Australia Securities Exchange is Preparing to Launch Spot Bitcoin ETFs
New reports have surfaced suggesting that Australia is also preparing to launch Bitcoin ETFs for the spot markets. The Australian Securities Exchange (ASX), the country’s primary equities trading platform, is expected to approve its first batch of spot Bitcoin ETFs before the end of the year, as cited by sources familiar with the matter.
Experts have called the Bitcoin-backed financial products’ upcoming entry a boon for the country’s financial sector, considering its robust $2.3 trillion pension market, which could play a pivotal role in sustaining inflows into the ETFs.
According to Bloomberg, nearly a quarter of Australia’s retirement assets are held in self-managed superannuation funds.
Sydney-based ETF issuers BetaShares and DigitalX are actively working towards launching Bitcoin spot ETFs on the ASX. American asset management giant VanEck, which offers the products in the US, resubmitted its application in February.
Justin Arzadon, head of digital assets at BetaShares, said the inflows for Bitcoin spot ETFs in the US are proof that digital assets are “here to stay”, also adding that the company has reserved tickers on ASX for spot Bitcoin and Ether ETFs.
A spokesperson for ASX said the exchange is engaging with several ETF issuers that are interested in launching crypto asset-based ETFs but is yet to confirm a date as to when exactly the products would be available to investors.
Australia’s $2.3 Trillion Pension Market Key for Spot Bitcoin ETF Inflows
Jamie Hannah, deputy head of investments and capital markets for VanEck Australia, says that with self-managed “super funds”, brokers, financial advisers, and platform money, there is a large enough market in the country to get the Bitcoin-focused ETF “to an adequate size”.
This is Australia’s second attempt at launching spot Bitcoin ETFs. In 2022, CBOE Australia, an alternative trade execution venue to the ASX, listed a couple of funds backed by the apex cryptocurrency.
A BTC-focused ETF launched on the exchange by Cosmos Asset Management was delisted a few months later due to meager inflows. Meanwhile, the Global X 21Shares Bitcoin ETF, which launched during the same time, currently holds around $62 million in assets under management.
Monochrome Asset Management, a company started by former CEO of Binance Australia, Jeff Yew, recently applied to list a spot Bitcoin ETF on CBOE Australia.
Bitcoin Spot ETF To begin Trading in Hong Kong Starting April 30th
Earlier this month, the Hong Kong Securities and Exchange Commission (SEC) approved applications for the first batch of spot ETFs backed by Bitcoin (BTC) and Ethereum (ETH), the world’s first and second-largest crypto assets by market capitalization. These products are said to start trading from April 30th onwards.
At the time of writing, Bitcoin (BTC) is trading at $62,147 – down 2.8% in the last 24 hours.
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