ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Modern Alpha
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Crypto Channel
  2. Australia Gives Okay for Crypto Spot ETFs
Crypto Channel
Share

Australia Gives Okay for Crypto Spot ETFs

Ben HernandezNov 08, 2021
2021-11-08

As the U.S. opens its doors for cryptocurrency exchange traded funds (ETFs), Australia is also moving forward with its own crypto agendas with the approval of spot price ETFs for bitcoin and ether.

The Australian Securities and Investments Commission (ASIC) also instituted guidelines and requirements for how issuers should offer crypto-based fund products. One of those requirements involves security, which has been a major point of conflict by regulatory watchdogs with regard to approving cryptocurrency-based ETFs.

ASIC noted that private keys must remain offline via cold storage as opposed to being held in a public storage option, such as an exchange. To add an extra layer of security, issuers must maintain private key backups across various geographic locations.

“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),” an Investopedia article noted. “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.”

The approval by the ASIC comes less than a month after the ProShares Bitcoin Strategy ETF (BITO ) started trading on the New York Stock Exchange after getting blessed by the U.S. Securities and Exchange Commission (SEC). Bitcoin purists may be lukewarm to the idea of a futures ETF, but spot price ETFs can bring more accuracy in terms of pricing.

“We recognize the interest in, and demand for, exchange-traded products (ETPs) and other investment products that hold crypto-assets in Australia. However, we are also aware of the real risk of harm to consumers and markets if these products are not developed and operated properly,” ASIC said in a statement.

Bitcoin Ethereum Price Change

Alt Coins Up Next?

As the U.S. awaits an ether-focused ETF next, it could open up the floodgates for more interest in alternative coins. With the approval from ASIC for bitcoin and ether, it’s only a matter of time before alt coin ETF products make their way into the Australian capital markets.

“This will represent a huge move forward as investors will finally be able to access Bitcoin through a cost-effective, liquid investment vehicle. As other digital assets mature, we expect the scope to broaden,” Asia-Pacific chief executive at VanEck Arian Neiron said in The Australian Financial Review.

For more news, information, and strategy, visit the Crypto Channel.


Content continues below advertisement

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X