Spot Bitcoin ETFs to Debut on Australia's Main Stock Exchange by 2024

Australia is set to launch several spot Bitcoin ETFs on its main stock exchange, the Australian Securities Exchange (ASX), by late 2024. This follows similar developments in the USA and Hong Kong. Key financial organizations, such as Van Eck Associates Corp. and BetaShares Holdings Pty, are preparing for these launches. The ASX is likely to approve the first spot Bitcoin ETFs soon.

Insiders suggest that ASX Ltd. could approve these ETFs by 2025, driven by increasing global interest in cryptocurrency ETFs, highlighted by large investments in the US by leaders like BlackRock and Fidelity Investments. Justin Arzadon of BetaShares mentioned that U.S. market trends confirm the staying power of digital assets, with BetaShares readying ASX tickers for Bitcoin and Ether ETFs. An ASX spokesperson acknowledged discussions with multiple issuers about launching Bitcoin-based ETFs, although no specific timeline was provided.

The introduction of these ETFs is expected to greatly impact Australia's $2.3 trillion pension market. About 25% of the nation's retirement assets are in self-managed superannuation programs, which could be key investors in these new crypto funds. Jamie Hannah from VanEck Australia notes that the combined interest from self-managed super funds, brokers, and financial advisors presents a significant market for ETF growth.

However, Australia has faced challenges in this area before. Previous attempts to launch similar ETFs on the smaller CBOE Australia platform saw limited success. For example, an ETF by Cosmos Asset Management was removed due to low inflows, and another by Global X 21Shares gathered only about $62 million. The move to the larger ASX platform, with its larger trading volume and wider investor base, should increase visibility and inflows.

This initiative reflects a broader global trend of increasing openness to digital assets, with regulatory bodies worldwide creating policies to include cryptocurrencies in mainstream financial products, marking them as stable and viable investments.

BetaShares and other firms are intensively preparing for regulatory approval, emphasizing the importance of secure token custody. “ASX is the exchange we want to list on,” said Arzadon, highlighting ASX’s strong regulatory environment and market presence. Lisa Wade, CEO of DigitalX, believes Australians could allocate up to 10% of their portfolios to cryptocurrencies, seeing them as potential new foundations for financial systems.