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Australia’s $2.3T Pension Market Seen as Potential Driver for Crypto ETFs

Published 29/04/2024, 07:29
Australia’s $2.3T Pension Market Seen as Potential Driver for Crypto ETFs
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  • Australia is expected to see a surge in Bitcoin ETFs mirroring the U.S. and Hong Kong.
  • Issuers like VanEck and BetaShares have submitted applications to list Bitcoin ETFs.
  • Australia’s $2.3 trillion pension market may drive ETF inflows as individuals can choose investments.

Australia is poised to witness a surge in Bitcoin exchange-traded fund (ETF) launches, mirroring developments in the U.S. and Hong Kong. According to a Bloomberg report, firms like Van Eck Associates and BetaShares Holdings are gearing up to list Bitcoin spot ETFs.

Sources familiar with the matter noted that ASX Ltd., responsible for roughly 80% of the country’s equity trading, is anticipated to greenlight the first Bitcoin spot ETFs for the main board by the end of 2024.

In an interview, BetaShares confirmed its efforts to launch a product on the ASX. Also, DigitalX Ltd., another local contender, disclosed in its half-year results in February that it had applied to list a Bitcoin ETF. Likewise, VanEck, known for similar investments in the U.S. and Europe, also refiled an ETF application in February.

Notably, this move follows the staggering $53 billion accumulated by the U.S. Bitcoin spot ETFs this year, including inflows from financial giants like BlackRock and Fidelity Investments. While the U.S. has approved spot ETFs of Bitcoin alone, funds directly investing in Bitcoin and Ethereum are set to debut in Hong Kong on Tuesday, April 30.

Justin Arzadon, BetaShares’s head of digital assets, argued that the staggering inflows in the U.S. ETFs “prove digital assets are here to stay.” He further disclosed that the company has reserved ASX tickers for spot ETFs of Bitcoin and Ethereum.

Furthermore, an ASX spokesperson mentioned that the exchange is actively discussing with several issuers interested in introducing crypto ETFs. However, the ASX rep opted not to provide a specific timeframe for these developments.

Notably, Australia’s $2.3 trillion pension market, with a quarter in self-managed superannuation programs, may drive inflows as individuals can choose investments. Jamie Hannah, deputy head of investments for VanEck Australia, conveyed this view, noting the programs could emerge as purchasers of spot-crypto funds. “There is a large enough addressable market here to get this ETF to an adequate size,” Hannah added.

The post Australia’s $2.3T Pension Market Seen as Potential Driver for Crypto ETFs appeared first on Coin Edition.

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