According to the Australian Financial Review, Australia’s bitcoin exchange-traded fund (ETF) is poised to debut on the Cboe next week, as the country’s largest equities markets clearinghouse gives participants the green light.
According to the article, Cosmos Asset Management might launch its bitcoin ETF as early as April 27.
However, unlike other comparable products globally, Australia’s first Bitcoin ETF would invest in shares of Purpose Investment’s bitcoin ETF – North America’s first bitcoin spot ETF that began trading in early 2021. In February, Cosmos teamed with Purpose Investments.
Australia’s bitcoin ETF might attract $1 billion
To let a bitcoin ETF begin trading under its cover, ASX Clear wanted a 42 percent margin. According to reports, there are currently three institutional clearing participants and one retail clearing participant prepared to offer the required margin to trade a bitcoin contract.
Last year, Cosmos, which Nasdaq-listed bitcoin miner Mawson Infrastructure Group controls, entered the cryptocurrency fund management sector. The entry was along with the Global Digital Miners Access ETF, which invests in bitcoin mining companies.
“We are now at our minimum number of clearing participants and that means we are good to go.”
Hamish Treleaven, chief risk officer at ASX
According to the article, ETF Securities, VanEck Australia, BetaShares, and Monochrome Asset Management are among the asset management firms interested in registering bitcoin-linked ETFs in Australia.
A successful launch, according to Grumelart, will result in an influx of new gamers. “If outside markets are any indicator, a successful debut would almost certainly result in a slew of listings for crypto asset-based funds other than Bitcoin,” he added.
Since last year, when Cosmos launched its Global Digital Miners Access ETF, this will be the firm’s second crypto-related ETF.
Over the last year, the country’s officials have been striving to establish clear laws for the crypto business. Senator Andrew Bragg believes that additional jurisdiction for the Australian Securities and Investments Commission (ASIC) is improper until bitcoin is recognized as a financial asset under Australian law.