Australia plans to introduce spot-Bitcoin ETFs by 2024, aiming to attract significant pension fund investments.
Australia is on the brink of introducing a series of Bitcoin exchange-traded funds (ETFs), a move that echoes developments in the United States and Hong Kong. This anticipation is driven by expectations that the Australian Securities Exchange (ASX), which accounts for approximately 80% of the country's equity trading, will approve the first spot-Bitcoin ETFs for the main board by the end of 2024.
The potential for these products is significant, as they could attract self-managed pension assets in a country with a $2.3 trillion pension market. Approximately one-quarter of Australia's retirement assets are held in self-managed superannuation funds, which may become substantial investors in these spot-Bitcoin funds.
Firms like Van Eck Associates Corp., BetaShares Holdings Pty, and DigitalX Ltd. are among those preparing for listings. "The US inflows prove digital assets are here to stay," said Justin Arzadon, head of digital assets for BetaShares, which has reserved ASX tickers for a spot-Bitcoin ETF.
In the United States, Bitcoin ETFs have gathered a whopping $53 billion this year, with prominent financial entities such as BlackRock Inc. and Fidelity Investments joining the fray. In Hong Kong, funds investing directly in Bitcoin are set to start trading, capitalizing on a recent market upswing that saw Bitcoin reach almost $74,000 last month.
Despite previous setbacks, such as the delisting of a Cosmos Asset Management spot-Bitcoin ETF due to poor inflows, there is renewed optimism. The Global X 21Shares Bitcoin ETF remains active with around $62 million in assets, and new applications are underway, including one by Monochrome Asset Management for listing on CBOE Australia.
A spokesperson for ASX confirmed ongoing discussions with issuers interested in admitting Bitcoin-based ETFs but did not provide a specific timeline for approval.
