Crypto ETF breaks records in Australia
In recent days, the world of ETFs, these index funds replicating an index or a thematic investment fund, has welcomed cryptocurrencies with open arms.
Indeed, the Securities and Exchange Commission (SEC), the American financial policeman, authorized the first Bitcoin ETFs across the Atlantic. The figures announced are also staggering, which proves the expectations of investors for this type of product.
But it’s not just in the United States that ETFs are popular. Indeed, in Australia, an index fund dedicated to the crypto sector has just been launched. From his first day, he broke a capitalization record in the country.
👉 On the same topic – ProShares Bitcoin ETF achieves second biggest launch in history
An ETF made up of companies in the cryptocurrency sector
On the day of the launch, the ETF’s trading volume reached in a few minutes 42.5 million Australian dollars (AUD), or 27.1 million euros on the ASX, the Australian stock exchange.
However, the previous record of the first day for an ETF was 8 million AUD, or 5.11 million euros. There is thus a massive willingness of investors to gain exposure to the crypto-asset sector.
This index fund allows investors to gain exposure to fifty companies more or less close to the digital assets sector. All are listed on the stock exchange.
We find in particular Galaxy Digital, Marathon Digital, Coinbase Global or Microstrategy. As we can see with the latter, the ETF includes companies that own BTC, without necessarily being part of the sector.
👉 To read – United States: a “Bitcoin companies (BTC)” ETF approved by the SEC
Soon a Bitcoin (BTC) or Ethereum (ETH) ETF Spot in Australia?
The success of the BetaShares index fund has revived rumors of a Bitcoin or Ethereum (ETH) ETF based on the cash market, the famous ETF Spot. For the CEO of a local exchange platform, this approval would be in the pipeline.
Indeed, the Australian Securities and Investment Commission (ASIC), the Australian financial regulator, has just given the green light to discuss this possibility.
If the conditions to be fulfilled are important, the ASIC nevertheless leaves the door open to this possibility. It would thus be more advanced on this subject than the SEC in the United States, which refuses any ETF based on the cash market.
Australia could thus get ahead of the Americans on this issue. Indeed, the questions are no longer whether a Bitcoin Spot ETF will be approved in the short term, but where and when.
👉 To read – United States: towards the approval of a real Bitcoin ETF (BTC) by the SEC?
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About the author: Benjamin Allouch
Formerly a lawyer specializing in personal data and digital law, I quickly became interested in Bitcoin, blockchain technology and their legal implications. I am now an independent consultant and writer in the field of cryptocurrencies and blockchain.
All articles by Benjamin Allouch.