Australia’s top exchange could approve Bitcoin ETFs this year: Report

Australia's largest stock exchange – the Australian Securities Exchange (ASX) – may green-light a number of bitcoin (BTC) exchange-traded funds (ETFs) by the end of 2024.

Bitcoin ETF applications from VanEck Australia and local ETF-focused fund manager Betashares are set to be approved before the end of the year, unnamed sources familiar with the matter told Bloomberg, following in the footsteps of funders in the United States and Hong Kong.

The spike in Bitcoin ETF applications in the space comes on the heels of Bitcoin ETF approvals in the United States, which saw around $53 billion in assets under management (AUM) accumulated across eleven different products.

The high volume of inflows into US-based ETFs gave it the confidence to launch its products in Australia and “confirm that digital assets are here to stay,” said Justin Arzadon, head of digital at Beta Shares.

Speaking to Cointelegraph, Jeff Yew, CEO of crypto asset management firm Monochrome – which has an application with a competing exchange – described Australia as a “very crypto-heavy country” and expects to generate between $3 billion and $4 billion in Australian Bitcoin ETFs. In the first three years of net income.

Yew said demand for Bitcoin ETFs is primarily driven by fund managers seeking exposure to Bitcoin and self-managed super fund (SMSF) investors, as well as a smaller but still significant appetite from retail.

SMSF investors currently hold direct exposure to Bitcoin on crypto exchanges, something he says is inherently risky and feels like a “ticking time bomb” if crypto exchanges fail.

“The Australian Taxation Office says there is more than $1 billion worth of crypto on exchanges and most of it is from SMSF investors,” he said.

Bitcoin ETFs, on the other hand, allow these investors to gain greater control and therefore greater exposure to digital assets, Yew said.

Monochrome originally applied for a spot Bitcoin ETF with the ASX on July 14, 2023, but later switched to Cboe Australia – a much smaller exchange – following a delayed approval process on the ASX.

“We switched to Cboe because it's an exchange that offers more accurate timeframes and a clearer listing framework.”

“It's no secret that the ASX has had challenges with the regulator recently,” Yew said. I think the push for new products is limited.

Yew still expects Cboe Australia to approve the company's application “in the next few weeks”.

Related: Australian Monochrome Spot Bitcoin ETF Expected to Launch in 2 Months, CEO Says