Australia's largest stock exchange, the Australian Securities Exchange (ASX), is reportedly poised to greenlight multiple spot Bitcoin exchange-traded funds (ETFs) by the close of 2024, following the lead of their counterparts in the United States and Hong Kong. According to insiders cited by Bloomberg, both VanEck Australia and local ETF fund manager BetaShares have submitted applications for spot Bitcoin ETFs, with expectations of approval by year-end.
The surge in applications for spot Bitcoin ETFs comes on the heels of their endorsement in the United States, where such products have amassed approximately $53 billion in assets under management across 11 different offerings. Justin Arzadon, the head of digital at BetaShares, expressed confidence in launching these products in Australia, citing the substantial inflows into US ETFs as evidence of the enduring presence of digital assets.
Jeff Yew, CEO of crypto asset manager Monochrome, hailed Australia as a "very crypto-heavy country," foreseeing that an Australian spot Bitcoin ETF could generate between $3 billion and $4 billion in revenue through net inflows within the first three years. He highlighted the demand from fund managers and self-managed super fund (SMSF) investors seeking exposure to Bitcoin, alongside notable interest from retail investors.
SMSF investors presently hold Bitcoin directly on cryptocurrency exchanges, a practice Yew likened to a "ticking time bomb" in the event of an exchange collapse. He noted that the Australian Taxation Office has identified over $1 billion in cryptocurrency holdings on exchanges, primarily attributed to SMSF investors. Bitcoin ETFs offer a regulated avenue for investors to access the digital asset, ensuring safer exposure, Yew emphasized.
Monochrome initially sought approval for a spot Bitcoin ETF from the ASX on July 14, 2023, but later shifted its application to CBOE Australia, a smaller exchange, due to the ASX's sluggish approval process. Yew cited challenges faced by the ASX from regulators and speculated on the exchange's limited interest in introducing new products. Nonetheless, he remains optimistic about CBOE Australia's approval of Monochrome's application in the near future.
