Financial regulators have given the green light to the first exchange-traded fund (ETF)for its acronym in English) Bitcoin (BTC) from Australiawhat will start trading on April 27and the Australian Financial Review reports that could receive up to 1,000 million dollars in tickets.
An ETF is a regulated exchange-traded fund that allows investors to benefit from the price of bitcoin without the need to directly own any currency.
Cosmos Asset Management beat local competitors VanEck, BetaShares and EFT Securities to issue Australia’s first bitcoin ETF. Each company has been in the race to close regulatory approvals since at least March, according to the Sydney Morning Herald.
The Cosmos Asset Management Bitcoin ETF (Cosmos Asset Management bitcoin ETF) will be listed on CBOE Australia, with the approval of the capital markets clearing house of Australia Securities Exchange (ASX) Clear. The approval came after Cosmos secured the minimum of four market participants to support the 42% margin requirements needed to cover risk, according to an article published by AFR on Tuesday.
The Cosmos Bitcoin ETF offers indirect exposure to bitcoin spot investing through the Canadian Purpose Bitcoin ETF.
Kurt Grumelart, a trader at Australian wealth management firm Zerocap, called the approval of the ETF “exciting” and commented that “validates increased institutional adoption” following record launch of Betashares CRYP fund that invests in US stocks exposed to cryptocurrency. At its launch in November 2021, the fund saw $10 million in net inflows in the first ten minutes. Grumelart expects the new bitcoin ETF to see similar success:
“The event marks a huge step forward for Australia and the general public’s acceptance of the crypto industry as a whole.”
Grumelart predicted that the success of the launch will cause the influx of other actors. “If overseas markets are any indication, a successful launch is likely to lead to a number of listings for funds based on crypto assets other than bitcoin,” he said.
This will be the second crypto-related Cosmos ETF since last yearwhen the company issued its Global Digital Miners Access ETF.
Australian regulators have been working to establish clear rules for the cryptocurrency sector for the past year.. The Australian Securities and Investments Commission (ASIC) wants more authority over the industry, but Senator Andrew Bragg believes that is inappropriate until cryptocurrencies are recognized as a financial asset under Australian law.
Grumelart said he believes clarifying the rules will help the development of the industry.
“As new ASIC regulations to govern crypto assets come out, we expect more clarity for local custodians and service providers, opening this up as a pathway within the next year.”
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.