Financial regulators have approved Australia’s first Bitcoin ETF, which will begin trading on April 27 and potentially see up to $1 billion in inflows, according to the Australian Financial Review.
An ETF is a regulated exchange-traded fund that allows investors to profit from the price of Bitcoin (BTC) without actually owning any coins.
Cosmos Asset Management beat over VanEck, BetaShares, and EFT Securities to become Australia’s first Bitcoin exchange-traded fund (ETF). According to the Sydney Morning Herald, each company has been vying for regulatory permissions since at least March.
With clearance by the Australia Securities Exchange (ASX) Clear capital markets clearinghouse, the Cosmos Asset Management Bitcoin ETF will be launched on CBOE Australia.
According to an April 19 report in the AFR, Cosmos received approval after securing the required four market participants to support the 42 percent margin requirements.
Through the Canadian Purpose Bitcoin ETF, the Cosmos Bitcoin ETF provides indirect exposure to spot Bitcoin investing.
Kurt Grumelart, a trader at Australian asset management firm Zerocap, called the ETF approval “exciting” and said it “validates greater institutional adoption” after the record-breaking launch of the Betashares CRYP fund, which invests in crypto-exposed US stocks.
The fund received $10 million in net inflows within the first ten minutes of its opening in November 2021.
Grumelart anticipates a similar level of success for the new Bitcoin ETF.
A successful launch, according to Grumelart, will result in an influx of new gamers.
“If overseas markets are any indication, it is likely that a successful launch will lead”
” to a host of listings for crypto asset based funds outside of Bitcoin,”
So, he says
Since last year, when Cosmos launched its Global Digital Miners Access ETF, this will be the firm’s second crypto-related ETF.
Over the last year, Australian officials have been striving to establish clear laws for the crypto business. Senator Andrew Bragg believes that additional jurisdiction for the Australian Securities and Investments Commission (ASIC) is improper until bitcoin is recognized as a financial asset under Australian law.
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