Australia Approves Long-Awaited Spot Bitcoin ETF – Investopedia

Australia Approves Long-Awaited Spot Bitcoin ETF – Investopedia

After months of industry consultation, Australia’s securities watchdog, the Australian Securities and Investments Commission (ASIC), has given the green light to long awaited spot exchange-traded funds (ETFs) in the world’s two largest cryptocurrencies, Bitcoin and Ethereum.

Key Takeaways

  • Australia’s regulator has approved spot exchange-traded funds (ETFs) in the world’s two largest cryptocurrencies, Bitcoin and Ethereum.
  • ASIC has provided best-practice guidelines and requirements for Bitcoin ETF issuers, emphasizing the protection and storage of crypto assets.
  • The crypto industry typically supports spot Bitcoin funds over futures-backed Bitcoin funds as they provide a higher level of accuracy, stability, and transparency.
  • Australia’s move to provide regulatory clarity for physically backed crypto ETFs sets a framework for other counties to follow.

The approval will allow Australian investors to gain direct exposure to the physical assets’ price through funds that trade on the Australian Securities Exchange (ASX). It also cements Australia’s intent toward digital innovation and opens the door for regulators in other jurisdictions to fast-track spot crypto ETFs as the asset class continues to gain momentum with investors.

Regulatory Guidelines

ASIC last week released a set of best-practice guidelines and requirements that
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