Key takeaways:
- Sidney-based Cosmos Asset Management will be the first financial services firm to launch its Bitcoin ETF in the Australian market
- The new fund will invest in Canada’s leading spot-based Bitcoin ETF managed by Purpose Investment, rather than directly in Bitcoin
- Institutional interest in Canadian Bitcoin ETFs peaked in Q1 2022, with capital inflows reaching new all-time highs
A report says $1 billion awaits the launch of Australia’s first Bitcoin ETF
Australian Financial Review (AFR) reported on Tuesday that Australia’s leading clearinghouse ASX Clear secured the “minimum number of clearing participants” and gave the go-ahead for the launch of the country’s first Bitcoin exchange-traded fund (ETF) next week. According to AFR, as much as $1 billion could flow into the new ETF once it is launched.
Hamish Treleaven, the Chief Risk Officer at ASX told AFR:
“We are now at our minimum number of clearing participants and that means we are good to go.”
According to the report, Sidney-based Cosmos Asset Management will be the first financial services firm to list its Bitcoin ETF on the leading securities and derivatives exchange Cboe. Rather than investing directly in Bitcoin, the soon-to-be-launched ETF will invest in Purpose Investment’s Bitcoin ETF (BTCC), Canada’s first Bitcoin spot ETF that launched last February.
Per a report published by the Sydney Morning Herald last month, BetaShares, EFT Securities, and VanEck have also been vying to launch their respective Bitcoin ETF offerings in the country. At the time, Betashares CEO and co-founder Alex Vynokur told the Sydney-based news outlet that investors are seeking to gain exposure to crypto via conventional investment vehicles, such as ETFs. Vynokur also expanded on the security aspects of ETF:
“Crypto ETFs may provide just that extra layer of security many ETF investors are looking for.”
The news of Bitcoin ETF launching in the Australian market comes roughly two weeks after blockchain analytics firm Glassnode reported that Bitcoin holdings of Canadian crypto ETFs increased by over 10% since January and hit record inflows. In addition, the physically settled BTCC saw the most growth, with its holdings increasing by 18.7% between January and April.
Last October, the launch of the first futures-based US Bitcoin ETF garnered a great deal of enthusiasm by investors. In less than two days, more than $1 billion was invested in the ProShares Bitcoin Strategy ETF (BITO) and propelled BITO to become the fastest ETF in history to reach the 10-figure mark.
The cryptocurrency community is eagerly awaiting the launch of a spot-based Bitcoin ETF in the US, which could lead to a drastic increase in the rate of institutional investment in Bitcoin. So far, the U.S. Securities and Exchange Commission (SEC) has rejected all spot ETF applications, citing the potential for price manipulation and fraudulent practices as the main reasons.
