Australia’s first bitcoin ETF gets the green light

The first Bitcoin exchange-traded fund (ETF) on Australia’s main market, the Australian Stock Exchange (ASX), will launch next week. The move follows the signing of four market participants who will provide margins on the instrument in accordance with the standards set by the clearing house ASX Clear, as reported by the Australian Financial Review.

Cosmos Asset Management has created Australia’s first Bitcoin ETF, traded on the CBOE exchange. According to the company’s press release, Cosmos Asset Management may launch a Bitcoin ETF on April 27.

However, unlike other similar products around the world, Australia’s first Bitcoin ETF will not invest directly in BTC. However, he will invest in the Bitcoin ETF offered by Purpose Investment. The ETF is North America’s first bitcoin spot ETF, starting trading in early 2021. Cosmos partnered with Purpose Investments in February.

Australia’s first Bitcoin ETF to be released next week

The Australian Stock Exchange (ASX) has announced that it will require 42% margin for Bitcoin ETFs to trade under its umbrella. It is now reported that three institutional clearing firms and one retail clearing firm have expressed a desire to provide the necessary margin for Bitcoin products.

Regarding margin, the Australian clearing house for all futures and product options, ASX Clear, found that there were four market participants willing to increase the requirements needed to cover settlement risk for this highly variable asset. As a result, ASX Clear will issue a seven-day regulatory approval notice to market participants on April 20, 2022. The announcement will give brokers, clearers, clearing participants, market makers and investors seven days to prepare.

Cosmos, of Nasdaq-listed Mawson Infrastructure Group, which got into the cryptocurrency fund management business over the past year, has made significant strides into the sector. He made his market debut with a product investment in a bitcoin mining company through the Global Digital Miners Access ETF.

According to the report, other asset management firms interested in launching Bitcoin-related ETFs in the country include ETF Securities, VanEck Australia, BetaShares, and Monochrome Asset Management.

Cosmos Bitcoin ETF is a fund invested in the Canadian Destination Bitcoin ETF. Cryptocurrency fund manager Cosmos Capital has partnered with Purpose Investments to create a Bitcoin ETF in the country. Reports also show that Cosmos has filed a Bitcoin ETF statement with the Australian Securities and Investments Commission (ASIC).

Growing acceptance of crypto in Australia

The news seems odd given that critics say the delay in approving the ASX Clear bitcoin ETF safeguard protects the Australian stock market from competition. The approval of the Bitcoin ETF reportedly comes two years after the Australian Securities and Investments Commission rejected a proposed Bitcoin product for retail sale in the country.

Correspondence states that the issue is not a topic of discussion, which is ASIC policy. Securities regulators are changing policies due to political pressure to support innovation in the capital markets.

Despite criticism from various countries for moving too slowly, ASX Clear says it has always been confident in its ETF approval process. According to Treleaven, the CBOE will carry out risk management and due diligence before launching a Bitcoin ETF as it is a new and complex product.

The Australian Stock Exchange has announced that it will allow trading of Bitcoin ETFs. Several cryptocurrency exchanges have announced that they can list Bitcoin ETFs after ASX’s approval to release official Bitcoin ETFs.

The number of cryptocurrency users in the country is growing rapidly, and institutional and retail investors are flocking to the market. According to some studies, most Australians own cryptocurrencies and make transactions in local shops. Recent news from grocery store and gas station operator On The Run (OTR) revealed that the company will start accepting cryptocurrency.

Moreover, the crypto environment in Australia has improved with the government introducing friendly laws and regulations. This has allowed cryptocurrencies like FTX to enter the market. The first Bitcoin ETF will also contribute to the advancement of cryptocurrency adoption in Australia.