Bitcoin ETF spot trend grows in Asia after US and Hong Kong approvals. ASX will list Bitcoin ETFs first by the end of 2024. ASX is expected to list DigitalX, VanEck and BetaShares Bitcoin ETFs while Monochrome opts for Cboe Australia.
The Australian Stock Exchange (ASX) is preparing to list its first batch of approved spot Bitcoin exchange-traded funds (ETFs). According to Bloomberg, the ASX is expected to list Bitcoin spot ETFs before the end of 2024.
ASX’s move into the cryptocurrency space is a significant development as it handles around 80% of local transactions with a market capitalization of $2.7 trillion. It will now compete against Cboe Australia, which offers spot trading of Bitcoin and Ethereum ETFs to Australian traders from 2022.
The Race to File Bitcoin ETF Applications
Four prominent companies, namely DigitalX Ltd., VanEck Australia, BetaShares and Monochrome Asset Management, have filed applications and expressed intentions for spot Bitcoin ETFs, seeking to capitalize on growing demand for regulated digital asset exposure within the investment landscape. Australia.
While DigitalX Ltd., VanEck Australia and BetaShares are seeking to list their Bitocin spot ETFs on the ASX, Monochrome Asset Management has shifted gears and is now seeking to list its Bitcoin spot ETF on Cboe Australia.
DigitalX Ltd., a local company, started the process by submitting its application in February, indicating its proactive stance in taking advantage of emerging investment opportunities.
Similarly, VanEck Australia, a renowned global investment management firm, reaffirmed its commitment to the Australian market by re-applying in February, following in the footsteps of its successful businesses in other jurisdictions.
BetaShares, a Sydney-based ETF provider, also entered the scene by expressing its intention to launch a spot Bitcoin ETF on the ASX, further diversifying its portfolio offering to meet the changing needs of Australian investors.
Australia-based Monochrome Asset Management first filed for a spot Bitcoin ETF with the ASX on July 14 last year. He later switched to Cboe Australia, a smaller ASX rival, citing the slow approval process at the ASX.
If the applications are approved, these four companies will join Global X 21Shares, which has been the only issuer of spot crypto ETFs in Australia since 2022, with its Bitcoin and Ethereum ETFs listed on Cboe Australia.
Rise of Bitcoin Spot ETFs in Asia
Momentum for spot Bitcoin ETFs has been gaining traction in Asia following regulatory approvals in the United States and Hong Kong.
With the successful introduction of 11 Bitcoin spot ETFs to the US market in January, which together have accumulated more than $53.16 billion in total net assets, investor interest in similar products has increased in other regions, including Asia.
Hong Kong, in particular, has emerged as a promising market for cryptocurrency investments in Asia, and the recent approval of the first batch of Bitcoin and Ether spot ETFs marks a major milestone in the region’s financial landscape.
Despite the estimated size of Hong Kong’s market being smaller compared to the US, the approval of six crypto ETFs earlier this month underlines the growing acceptance of digital assets among investors and regulators alike.
As investors seek diversified investment opportunities amid current market volatility, the introduction of spot Bitcoin ETFs in key financial markets provides a regulated avenue to access the burgeoning cryptocurrency market, heralding a new era of adoption and widespread integration within traditional investment portfolios.
By Leonardo Perez
