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Next week, Australia’s first spot exchange-traded products for bitcoin and ether will be launched by 21Shares and ETF Securities.
The crypto Trade will be strictly regulated
These will be Australia’s first products to invest directly in the underlying assets. Rather than investing in spot bitcoin, Cosmos Asset Management’s ETF invests in the Toronto-based Purpose Bitcoin ETF.
With two spot ETFs from 21Shares expected to launch next week, joining an offering from Cosmos Asset Management, the market for crypto exchange-traded funds in Australia is becoming increasingly competitive.
21Shares, which manages $2.5 billion in assets and has 30 global exchange-traded products, has teamed up with ETF Securities to develop a bitcoin ETF and an ether ETF, according to a statement released Tuesday.
Starting on April 27, both funds will be listed on the Cboe Exchange, with pricing fixed to the Australian dollar.
Coinbase will serve as the custodian for the funds, which will retain bitcoin and ether in cold storage.
The two products, according to Graham Tuckwell, executive chairman of ETF Securities Australia, allow investors to “trade crypto in a strictly regulated environment without having to maintain their wallet or monitor risk.”
The introduction of crypto ETFs in Australia prompted VanEck director Gabor Gurbacs to blast US regulators, calling the Securities and Exchange Commission’s cautious approach to registering a bitcoin ETF “a big loss for investors.”
The approval of a bitcoin ETF
According to the article, ASX Clear has four market participants, one retail and three institutional clearing participants, willing to front the 42 percent margin requirement for settlement risks.
All Australian shares, structured products, warrants, and Australian Securities Exchange equity derivatives are cleared by ASX Clear.
The approval of Australia’s first bitcoin ETF comes after the country’s ruling party proposed laws to regulate custody, DAOs, crypto taxation, and digital asset service provider licensing, among other things.
While Australia’s incumbent Liberal Party faces an uphill battle at the polls in five weeks, the approval of a bitcoin ETF might pave the way for a new path for the young asset class in the country.
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Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
