Earlier today, Bloomberg reported that the Australian Securities Exchange (ASX) could approve the first batch of bitcoin spot ETFs before the end of the year, following applications from existing players including VanEck, BetaShares and DigitalX.
The ASX is Australia's largest stock exchange. According to the exchange's website, it has a domestic market capitalization of $2.7 trillion and will have more than 2,000 issuers as of March 2024.
Meanwhile, the upcoming launch will be the second wave of such products in Australia. #Cryptocurrency ETFs such as Cosmos Asset Management and Global X 21Shares were introduced in 2022.
However, these products were withdrawn from the market due to low demand. Trading volumes were initially lower than expected, and the onset of the cryptocurrency downturn, exacerbated by the collapse of FTX and the algorithmic Stablecoin Terra, further eroded investor interest.
Despite previous setbacks, issuers are optimistic this time around," said Ariane Neuron, CEO and managing director of VanEck Asia Pacific:
"Following the SEC's decision, we have seen a significant increase in inquiries and inquiries from advisers and brokers regarding the ASX's proposal to launch a #bitcoin #ETF ... Demand for access to bitcoin through ASX-traded exchange-traded products has increased and many clients have told us that their clients have told us they are willing to do so.
Since its launch in January, the bitcoin-ETF has quickly gained popularity, breaking multiple records and amassing an unprecedented $53 billion in assets under management (AUM).
However, despite the initial enthusiasm and significant growth, these ETFs are now experiencing declining inflows.
Over the past week, all ETFs have experienced significant outflows in excess of $300 million, with big names like BlackRock and #Fidelity experiencing days of zero inflows.
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