Australia’s largest exchange approves its first spot Bitcoin ETF – DiarioBitcoin
By Hannah Perez
Shortly after the debut of Australia’s first spot Bitcoin ETF, the country’s largest exchange chooses to follow in the footsteps, giving its blessing to such a product.
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- ASX, Australia’s largest exchange, opens the door to a spot Bitcoin ETF
- It is not the first product of its kind in the country, but it is the first to be launched on the ASX
- VanEck will be the issuer of the fund that will begin trading on June 20
- Other issuers are also seeking approval, also betting on Ethereum ETFs
Australia’s largest stock exchange is opening the door to an exchange-traded fund (ETF). Bitcoin.
The Australian Securities Exchange (ASX) approved its first ETF Bitcoin cash. The investment company VanEck will be the issuer of the product, which will begin trading on Thursday, June 20 under the symbol VBTC.
The decision by the main Australian exchange comes after the rival exchange, Cboe Australia, will approve an ETF of this type at the beginning of May. That vehicle, managed by Monochrome Asset Managementbegan trading at the beginning of the month and established itself as the first ETF in the country that directly owns cryptocurrencies.
Although in Australia there were already regulated investment products in Bitcoin, this will be the first time such a fund has been traded on the ASX. In Australia, companies require approval from the regulator and then from the exchange that lists the product.
VanEckwhich already operates an ETF of Bitcoin spot in the United States since January, hinted that the decision to launch a fund on Australia’s largest exchange comes in response to the increasing demand from local investors to gain exposure to Bitcoin through a “regulated, transparent and familiar investment vehicle”.
“Demand for access to Bitcoin through an ASX-listed vehicle has been increasing, and many of our clients have told us that their clients are already positioned to have an allocation ready to invest.“said Arian Neiron, CEO and CEO of VanEck Pacific Asia.
“We recognize that Bitcoin is an emerging asset class that many advisors and investors want to access.“he added.
Previous reports had already anticipated that the ASX would possibly open to a product with these features in 2024, amid a wave of broader acceptance at the local level. Bitcoin. After the approval of the first ETFs of Bitcoin spot in the US, Hong Kong regulators also welcomed cryptocurrency ETFs.
Australian regulator issues warning
But despite this acceptance, Australian regulators have issued a warning to those interested in participating in the new class of funds. Following ASX approval, the Australian Securities and Investments Commission (ASIC) warned investors not to get carried away with digital assets such as Bitcoinaccording to a local media report.
“ASIC has repeatedly warned investors that cryptocurrencies are risky, intrinsically volatile and complex. Investing in it is a highly speculative activity.“said a spokesperson for the regulatory agency, according to the coverage. “Investors should only invest what they are willing to lose.”.
The arrival of a ETFs Bitcoin to Australia’s main stock exchange is a major milestone. As the country’s largest stock exchange, ASX provides greater visibility, credibility and access to exposure to Bitcoin for institutional and retail investors.
Meanwhile, other local issuers are also reportedly seeking approval from local stock exchanges to list their cryptocurrency ETFs on the ASX and other exchanges, including ETFs. Ethereum in cash, already approved in the US.
The director of DigitalXLisa Wade told the local newspaper quoted that her company was “very advanced” in the launch of an ETF based on Bitcoin on ASX and is also interested in one that tracks the price of the second largest cryptocurrency by market capitalization. “Ether is very present on the radar“said.
“We’re just looking for ASX and ASIC to provide a tailwind, and then it’s very much the next step as we already run a multi-asset crypto fund“He added, pointing out the need to have prior regulatory approval.
Article by Hannah Estefanía Pérez / DailyBitcoin
Picture of Unsplash
WARNING: This is an informative article. DiarioBitcoin is a media outlet, it does not promote, endorse or recommend any particular investment. It is worth noting that investments in cryptoassets are not regulated in some countries. They may not be suitable for retail investors as the entire amount invested could be lost. Check the laws of your country before investing.
