In Australia, a new era has begun for cryptocurrency investors. DigitalX received regulatory approval to list its spot Bitcoin ETF (BTXX) on the ASX. This development signifies a significant step for Australian investors to gain legal and direct access to Bitcoin. BTXX will start trading on the ASX on Thursday.
ASX Dominates the Market
ASX holds a dominant position in Australia’s stock trading market, accounting for about 80% of the country’s trading volume. It is preferred by investors due to its liquidity and broad acceptance compared to its main competitor, Cboe Australia.
To be listed on the ASX, stringent regulatory requirements must be met. These requirements include comprehensive disclosures, financial standards, and compliance with exchange rules. Once these criteria are met, the ETF is officially listed, and public trading begins on the designated date.
BTXX and VanEck’s VBTC
DigitalX’s BTXX differs from VanEck’s VBTC, the first Bitcoin ETF listed on the ASX, which provides exposure to Bitcoin through investments in the VanEck Bitcoin Trust (HODL) listed on the Cboe exchange in the US.
Unlike VanEck’s product, DigitalX’s ETF will only be subject to Australia’s local rules and laws. This will prevent it from being affected by regulatory developments in the US. Australian investors will thus be isolated from US political and regulatory fluctuations impacting Bitcoin funds.
History of Bitcoin ETFs
The history of Bitcoin ETFs in Australia began in April 2021 with the launch of the Global X 2022Shares Bitcoin ETF (EBTC) on Cboe Australia. This product was the first to use a wholesale-retail feeder fund structure in the country. Shortly after, Cosmos Asset Management introduced the Cosmos Purpose Bitcoin Access ETF. However, it was later delisted due to market instability triggered by the collapse of Terra/Luna and significant crypto lenders.
The downturn in the cryptocurrency market temporarily halted the listing of new Bitcoin ETFs in Australia. However, the trend revived this year with Sydney-based Monochrome Asset Management listing its IBTC product on Cboe Australia on June 4. Two weeks later, VanEck’s Bitcoin ETF followed. DigitalX’s listing on the ASX marks a different phase in Australia’s financial markets.
