Sydney-based asset manager DIGITALX has gained approval from the Australian Securities Exchange (ASX) to launch a Bitcoin ETF. This is the second Bitcoin ETF approved by Australia's premier stock market. The DigitalX Bitcoin ETF, with the ticker BTXX, will be listed on July 12, as stated by the company.
DigitalX partnered with K2 Asset Management and 3iQ to create this ETF. CEO Lisa Wade believes the Bitcoin ETF will attract new market participants and help institutional investors include Bitcoin and digital assets in their portfolios. Wade highlighted the long-term goal of integrating cryptocurrencies into traditional investment strategies.
Three weeks ago, the ASX also approved VanEck’s Bitcoin ETF (VBTC). Sydney-based BetaShares Holdings has applied to launch Bitcoin and Ethereum ETFs on the ASX. These approvals indicate a growing acceptance of cryptocurrency investments in Australia.
Before these latest approvals, Australia had already seen the introduction of Bitcoin ETFs. The Global X 21 Shares Bitcoin ETF (EBTC) launched in April 2022, and the Monochrome ETF (IBTC) started trading on the Cboe Australia exchange on June 4.
In the US, Bitcoin ETFs saw a significant inflow of nearly $300 million recently, causing a 3% price increase in 24 hours. Bitcoin is currently trading at $57,300, showing resilience despite a recent drop from $70,000 to $53,500.
The market has faced selling pressure due to factors like Mt. Gox’s repayments and the German government’s BTC sales. However, the inflow into Bitcoin ETFs suggests investors are looking to buy Bitcoin at lower prices, showing bullish sentiment.
Historically, July has been a good month for Bitcoin, with average returns of 7.98% and median returns of 9.60%. Optimistic economic indicators and renewed interest in Bitcoin ETFs support the expectation of continued positive trends.
The approval of the DigitalX Bitcoin ETF is a significant milestone for crypto investment in Australia. It shows growing acceptance and integration of digital assets into traditional markets, likely encouraging more asset managers to offer similar products.
The approval of the DigitalX Bitcoin ETF marks a critical development for cryptocurrency investments in Australia. By partnering with established firms and focusing on long-term goals, DigitalX aims to attract new participants and institutional investors. The historical performance of Bitcoin in July and the substantial inflows into Bitcoin ETFs suggest a positive outlook for the cryptocurrency despite recent volatility. As the market evolves, new Bitcoin ETFs will play a crucial role in shaping the future of digital asset investments.
