The spot Bitcoin ETF market has gained approval and popularity in America and Asia and may extend to Australia before year-end.
The Australian financial markets, a significant player in the global economy, could be the next to embrace a Bitcoin ETF, following in the footsteps of their counterparts in the United States and Hong Kong. According to Bloomberg, the Australian Securities Exchange (ASX) is reportedly planning to greenlight Bitcoin ETF filings before the close of 2024, a move that could potentially reshape the landscape of the Australian financial market.
Australia Financial Markets to Welcome ETFs
As a spokesperson revealed, Betashares is working towards launching a product on the ASX. DigitalX Ltd, alongside VanEck, has also revealed through February reports that both companies have submitted applications pending approval from the ASX.
The ASX trades at a market capitalization of about $2.3 trillion and is one of the world’s top 20 exchange groups, managing more than 80% of the Australian financial market. It regulates about 86 listed securities.
VanEck Australia and BetaShares, two prominent players in the financial market, are among the fund managers vying for the coveted Bitcoin ETF approval. The competition is intense, and the potential entry of other funds before the year-end could further spice up the race, making the outcome even more unpredictable and thrilling.
Undoubtedly, Australian funds will be eyeing a similar success story to their American counterparts. In the United States, Bitcoin ETFs have made a splash, attracting a staggering $53 billion in investment capital since their launch in January. Industry giants like BlackRock and Fidelity Investments have led this success, setting a high bar for Australian funds to match.
Financial analysts are bullish on the Australian market, which is currently valued at a staggering $360.6 billion. They predict that the market will experience significant growth within the next three years. The ASX, the country’s largest stock exchange, plays a pivotal role in this growth, allowing firms to issue securities to the general public for trading.
About 4.6 million Aussies are already using cryptocurrencies. The approval of different spot Bitcoin and Ethereum ETFs will allow more users to invest in cryptocurrency easily through the funds, speeding up the growth of Australia’s financial value.
Expressing optimism on the impact of bitcoin ETF in Australia, Justin Arzadon, Betashares head of digital assets, said, “The US inflows prove digital assets are here to stay.” Acting on this, the company has reserved tickers for spot bitcoin and ether ETFs.