Australia Will List Its First Bitcoin ETF Next Week

Vignesh Karunanidhi
Australia's Central Bank Warms to Digital Currency as the Future of Money
Source: Pixabay

Australia’s first bitcoin ETF has reportedly received the green light to list next week on the Australian Securities Exchange (ASX).

The very first bitcoin ETF (Exchange Traded Fund) will list on the ASX as per the reports by the Australian Financial Review. The clearinghouse that controls the country’s equity markets will pass the green light after the required number of participants agree to the tight margin requirements.

Australia’s first-ever bitcoin ETF

The first bitcoin ETF listing will take place on the Cboe equities trading venue. A whopping $1 billion is speculated to flow into the country’s ETF.

“ASX Clear, the powerful clearing house at the center of Australia’s equity capital markets, now has four market participants willing to stump up the tough margin requirements needed to cover the settlement risks for this highly volatile asset.”

As detailed in the report.

Before allowing to trade in a bitcoin ETF, there are presently three participants and one significant retail participant who is willing to provide the ASX’s demand of 42 percent margin.

“We are now at our minimum number of clearing participants and that means we are good to go.”

Says Hamish Treleaven, the chief risk officer at ASX

On Wednesday, the market participants will be issued a notice before the regulatory approval. The Cosmos Asset Management bitcoin ETF will be the only ETF that will be clearly available to start trading on April 27.

Last year, Cosmos got into the crypto funds management with a net assets value of $2.1 million with a Global Digital Miner Access ETF. Some of the other players who have entered the bitcoin ETF space include ETF Securities, VanEck Australia, BetaShares, and Monochrome Asset Management.

The news is a significant breakthrough that followed after two years when Australian Securities ruled out the possibility of promoting a bitcoin product in Australia.