Australia is witnessing a significant advancement in the cryptocurrency investment landscape. DigitalX has secured regulatory approval to list its spot Bitcoin ETF (BTXX) on the Australian Securities Exchange (ASX). This move marks a crucial juncture for Australian investors, offering a legal and direct gateway to Bitcoin. Trading of BTXX is set to commence on ASX this Thursday.
ASX’s Market Impact
The ASX dominates Australia’s stock trading arena, handling approximately 80% of the nation’s trading volume. Investors prefer it due to its high liquidity and widespread acceptance, compared to its main competitor, Cboe Australia. To be listed on the ASX, stringent regulatory criteria must be met, including comprehensive disclosures, financial standards, and strict adherence to exchange rules. Once these conditions are satisfied, the ETF becomes officially listed and begins public trading on the designated date.
BTXX vs. VanEck’s VBTC
DigitalX’s BTXX is distinct from VanEck’s VBTC, the first Bitcoin ETF listed on the ASX, which invests in the VanEck Bitcoin Trust (HODL) listed on the Cboe exchange in the US. Unlike VanEck’s product, DigitalX’s ETF will only follow Australia’s local regulations. This isolation shields Australian investors from US political and regulatory changes affecting Bitcoin funds.
Concrete Insights
Key Takeaways:
- BTXX offers a locally regulated Bitcoin investment option.
- ASX’s high liquidity makes it an attractive market for trading BTXX.
- Investors in BTXX are insulated from US regulatory impacts on Bitcoin.
History of Bitcoin ETFs in Australia
Bitcoin ETFs in Australia commenced in April 2021 with the launch of the Global X 2022Shares Bitcoin ETF (EBTC) on Cboe Australia. This product was pioneering, utilizing a wholesale-retail feeder fund structure. Shortly after, Cosmos Asset Management introduced its Cosmos Purpose Bitcoin Access ETF, which was later delisted due to market volatility caused by the collapse of Terra/Luna and major crypto lenders.
The cryptocurrency market downturn temporarily halted new Bitcoin ETF listings in Australia. However, the trend was revived this year with Sydney-based Monochrome Asset Management listing its IBTC product on Cboe Australia on June 4. Two weeks later, VanEck followed with its Bitcoin ETF. DigitalX’s ASX listing signifies a new chapter in Australia’s financial markets.