Australia Mulls Bitcoin ETF to Bolster Crypto Hub Ambitions

• The largest stock exchange in Australia is reportedly considering the launch of Bitcoin ETFs.
• A number of issuers have reportedly filed applications for approval.
• The approval of Bitcoin ETFs in Australia could signal a regulatory shift for the local industry.

Bitcoin exchange-traded funds (ETFs) are still driving all the buzz, having made headlines for their historic launch in the United States following approval from the Securities and Exchange Commission (SEC) . The growing influence has sparked a global wave of interest, and aspiring digital hubs such as Hong Kong and the United Kingdom have wasted no time in signaling intent to join the trend. 

As the momentum spreads, speculation abounds regarding the next region to embrace the investment vehicle.

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Are Bitcoin ETFs Coming to Australia?

On April 28, Bloomberg reported that the Australian Securities Exchange (ASX), Australia’s largest stock exchange, is considering launching Bitcoin ETFs.

Citing anonymous sources, the report stated that the exchange has received and is currently reviewing applications from issuers, one of which is asset management firm VanEck, which debuted its Bitcoin ETF in the U.S. alongside others in January.

Local Australian firms BetaShares and DigitalX have also reportedly submitted individual applications for regulatory approval to ASX, which is anticipated to list its first batch of approved spot ETFs by the end of the year. 

The prospect of a Bitcoin ETF launch in Australia has spotlighted the region’s broader approach to the crypto asset class.

Is Australia A Crypto Hub?

The Australian crypto industry has historically received a cautious reception from regulators, marked by a lukewarm approach to the asset class and efforts to mitigate risks for regional investors.

The Securities and Investments Commission (ASIC), Australia’s regulatory watchdog, has enforced stringent regulations to protect consumer interests. It often takes action against non-compliant crypto service providers to mitigate associated risks.

In October 2023, Australia’s Treasury published a regulatory consultation paper addressing vulnerabilities associated with the crypto industry, pushing for increased oversight to ensure consumer protection. However, the successful launch of Bitcoin ETFs in Australia would signal a more favorable reception to the asset class, potentially setting a positive precedent for the country’s digital ambitions.

On the Flipside

• The Hong Kong Securities and Futures Commission has received several Bitcoin ETF proposals and is expected to roll out approval within the month.
• Bitcoin ETFs in the United States have performed impressively since launch, collectively accumulating over $53 billion in assets under management (AUM).
• In September 2023, Australian authorities initiated legal proceedings against crypto exchange Kraken, citing non-compliance and regulatory violations.

Why This Matters

Australia’s interest in Bitcoin ETFs highlights the increasing recognition of BTC and the crypto asset class worldwide. If launched, Bitcoin ETFs in Australia could attract significant investment by opening an additional pathway to the asset class, fostering mainstream acceptance and adoption.

Read more about Australia’s crypto ambitions despite broader resistance:
Australia’s CBDC Realization ‘Remains Distant’: Central Bank Report

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