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NewsHighlights:
- The ASIC published regulations for funds looking to list Crypto ETFs
- The Australian regulator decided not to mandate the domestic holding of cryptocurrencies.
- DIGA becomes the first Crypto linked ETF in Australia
Raining ETFs
The Australia Securities and Investments Commission (ASIC) issued market fresh regulations on oct 29 for funds that are looking to list their ETFs and other Structured products on the Exchange. The Regulatory body started its consultation with all stakeholders in early days of June and has now come out with Guidelines to list the product.
The Guidelines to list an ETF include an Grand institutional Support of the crypto currencies, A measurably large and mature market for that particular token for which the ETF is prepared, reputed and organised service providers and a dynamic pricing mechanism. Currently the ASIC considers Bitcoin and Ethereum to be Justified under the new regulations & guidelines.
The World has been overwhelmingly welcoming of ETFs and various derivatives around well renowned and famous cryptocurrencies like Bitcoin and Ethereum. The Trend sparked after the most awaited Pro shares ETF made its debut on oct 19 at the New York Stock Exchange (NYSE).
Exemptions of a Stringent kind
After discussing with many stakeholders, The ASIC decided not to mandate the custody and store of the tokens domestically. The exemption is made for all crypto ETFs after understanding that such regulations would hinder Fair competition.
However all Licensed Exchanges will assess whether the issuer of the ETF is able to fulfill all it’s requirements and obligations in regards to the product and look after all the licensing norms and to make sure that the investors have their custody safe & sound.
Australia’s crypto linked ETFs
The Cosmos Global Digital Miners Access by Cosmos Asset management, Trading under the ticker code of DIGA became the first ever australian crypto linked ETF. DIGA specifically tracks all crypto mining companies like Hut 8 & Riot Blockchain. The Sydney based company listed 230,000 units at the net value of $5.2 dollars each. DIGA is currently up by 5.8% and is trading at $5.3 at the time of writing.
Another Australian ETF is preparing to hit the Trading grounds at the soonest. The ETF is provided by Betashares and Tracks industry linked companies like Michael Saylor’s micro strategy and coin base. The ETF will be traded under the ticker code of CRYP and will start trading from next week.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
