Australia to launch first-ever Bitcoin ETFs by 2024

Australia is set to launch its first-ever spot Bitcoin ETFs by the end of 2024, according to a Bloomberg report. This development marks a significant milestone as both local and international players vie for a share of the Australian Bitcoin exchange-traded fund market.
BetaShares, an Australian financial entity, is currently in the process of creating an ETF spot for the Australian Securities Exchange (ASX). DigitalX Ltd has also announced its participation in this endeavor. Additionally, global investment manager VanEck, which already oversees Bitcoin ETFs in the US and Europe, has submitted a proposal to enter the Australian market.
ASX officials have confirmed that negotiations with potential issuers for listing new crypto-ETFs are underway. However, they have not provided specific details about these discussions.
This is not the first time Australia has been involved in approving a Bitcoin ETF. Two years ago, Cosmos Asset Management played a crucial role in launching the first-ever Bitcoin spot exchange on the smaller of the two exchanges, CBOE. Unfortunately, due to a lack of investor interest, the fund was closed and delisted from the exchange in late 2022.
Meanwhile, the Global X 21Shares Bitcoin ETF has amassed over $62 billion in assets. The focus now shifts to ASX, which could attract investors if it approves the Bitcoin spot ETF. Monochrome Asset Management is currently working on Bitcoin ETFs on CBOE.
The global landscape of cryptocurrency-related investment products is also rapidly evolving. As of April 24, 2023, the market capitalization of US ETFs tracking the underlying currency of Bitcoin amounts to approximately $53 billion. Hong Kong plans to unveil a combined Bitcoin and Ethereum spot ETF, with active trading to commence shortly after. Chinese fund managers are also planning to launch their own cryptocurrency ETF spot for Bitcoin and Ether, following the successful model of similar American funds.
In early April, the London Stock Exchange announced that it will accept applications for crypto exchange-traded notes. These notes, like ETFs, enable the trading of crypto-related assets on major exchanges, providing regulated avenues for investors to gain exposure to cryptocurrencies.
Australia’s decision to embrace fund-based spot Bitcoin ETFs reflects the growing acceptance of digital currencies as part of the traditional financial system. It signifies an organized and structured approach to investing in this asset class. The introduction of these products could reshape the investment landscape in Australia and contribute to the maturation of global cryptocurrency markets.