Australia’s first Bitcoin ETF to list next week
Australia’s crypto scene is due for a shake-up as regulators hammer out clear-cut rules for the industry.
Australia’s first Bitcoin exchange-traded fund (ETF) will officially list on Cboe Australia’s trading platform next week.
Cosmos Asset Management’s Bitcoin ETF has four market participants that will cover initial margin requirements of 42%.
ASX chief risk officer Hamish Treleaven says the green light has been granted for the listing to go ahead next week.
“We are now at our minimum number of clearing participants and that means we are good to go,” he said.
The four participants are willing to meet the stringent margin requirements required to cover the settlement risks associated with Bitcoin, much to the delight of those interested.
The interest levels are projected to be through the roof, with $1 billion expected in inflows in the ETF when it goes live in Australia next week.
Traders hope the ASX’s approval for Cosmos Bitcoin ETF will set the tone for Australia to begin listing more bitcoin ETFs in the future.
How Bitcoin ETF operates
The public, brokers, clearers, clearing participants, market movers and investors have been given seven days to prepare the launch of the new Bitcoin ETF, which has been penciled in for the 27th of April.
Australia’s first established bitcoin ETF will not invest in Bitcoin directly, but in shares of Purpose Investment’s bitcoin ETF – North America’s first bitcoin spot ETF that commenced trading early last year.
This comes as Cosmos entered a partnership with Purpose Investments in February, earlier this year.
VanEck, BetaShares and Monochrome Asset Management plan to list their ETF on the ASX at a future date.
While Cosmos Asset Management and ETF Securities are both planning to launch their ETF on the Cboe exchange next week.
Game-changing for Australia-Crypto scene
Experts believe the crypto scene in Australia is due for a shake-up as regulators have been working tirelessly over the past year to hammer out clear-cut rules for the industry.
Trader at Australian wealth management firm Zerocap Kurt Grumelart says the historical listing set to take place next week will be both exciting and a tremendous success.
“The event marks a large step forward for Australia and mainstream acceptance of the crypto industry as a whole,” he said.
The approval of the listing comes after recent proposed legislation from Australia’s ruling parting seeking to regulate custody, DAOs, crypto taxation and digital asset service providing licencing, among other aspects.
Grumelart says further clarification of the rules surrounding crypto trading in Australia will aid the development of the industry.
“As the new ASIC regulations come out governing crypto assets, we expect greater clarity for local custodians and service providers, opening up this as an avenue within the coming year,” he added.