The anticipation of Bitcoin ETFs has ignited the crypto industry, reaching new heights. Australia is poised to introduce a wave of Bitcoin exchange-traded funds (ETFs) after similar approvals in the US and Hong Kong.
The Australian Securities Exchange (ASX), the country’s primary stock exchange, is expected to play a pivotal role in this development, approving several Bitcoin exchange-traded funds (ETFs) by the end of 2024.
In line with developments in the United States and Hong Kong, VanEck Australia and local ETF-focused fund manager BetaShares are reportedly awaiting approval for their spot Bitcoin ETF applications, according to undisclosed sources cited by Bloomberg. DigitalX Ltd., another local entity, also disclosed its application submission in its February half-year results.
The surge in spot Bitcoin ETF applications follows the success of Bitcoin ETFs in the United States, which have accumulated approximately $53 billion in Assets Under Management (AUM) across eleven different products.
Targeting Australia’s $2.3 Trillion Pension Market
Bitcoin ETF issuers are eyeing significant prize funds from Australia’s $2.3 trillion pension market. This move could potentially reshape the nation’s investment landscape.
Around a quarter of the nation’s retirement assets reside in self-managed superannuation programs, allowing individuals to choose their investments independently. Jamie Hannah, deputy head of investments and capital markets for VanEck Australia, suggests that these programs could potentially become purchasers of spot-crypto funds.
This isn’t the first encounter with spot Bitcoin ETFs in Australia. In 2022, Sydney-based Cosmos Asset Management introduced a spot Bitcoin ETF, later opting to delist it due to minimal inflows. Another BTC ETF, Global X 21Shares, launched the same year, boasting over $62 million in assets under management.
