Australia to Launch Spot Bitcoin ETFs by End of 2024: Report

Australia’s largest stock exchange — the Australian Securities Exchange (ASX) — is expected to approve the country’s first spot Bitcoin exchange-traded funds (ETFs) later this year, Bloomberg has reported, citing people familiar with the matter.

The surge in spot Bitcoin ETF applications follows the approvals in the United States. The 11 spot BTC funds in the US have since amassed $53.16 billion in total net assets. Justin Arzadon, the head of digital at Sydney-based BetaShares, said the considerable inflows into US-based ETFs have provided the confidence to launch the products in Australia. Moreover, Hong Kong is set to launch its first spot BTC and Ether ETFs on April 30.

Following in the footsteps of ETF issuers in Hong Kong and the US, several companies have already submitted their applications earlier this year. DigitalX Ltd., another local company, disclosed in its half-year results in February that it had applied for a BTC ETF. 

BetaShares told Bloomberg it is working toward launching a crypto ETF on the ASX. Additionally, VanEck, a major player in US and European BTC ETFs, resubmitted its application in February. ASX is the top equity exchange in Australia, overseeing approximately 80% of all local trades. As of March, the ASX’s domestic market capitalization stood at $2.7 trillion.

In July, a Brisbane-based crypto-focused investment management firm, Monochrome Asset Management, applied for a spot Bitcoin ETF with Cboe Australia, the smaller rival of the ASX. The product is set to launch in the second quarter of the year after getting approval from the Australian Securities & Investments Commission (ASIC).

Australia Re-enters Bitcoin ETF Market Amid Global Crypto Boom

This is not the first time that spot BTC ETFs are coming to Australia. In 2022, Cosmos Asset Management, a North Sydney-based cryptocurrency fund manager, launched spot Bitcoin and Ethereum ETFs. However, due to low demand, it delisted these products during the same year. Their historic launch happened when the Terra ecosystem collapsed. In November 2022, the industry faced a major crisis with the downfall of the FTX crypto empire.

Meanwhile, the Global X 21Shares Bitcoin ETF, launched the same year, has more than $62 million in assets under management. In 2024, crypto market conditions seem much more favorable for Bitcoin ETFs. Despite a significant price pullback, BTC continues to trade close to record highs.