Australia’s Securities and Investments Commission (ASIC) has green-lighted the first-ever spot Bitcoin ($BTC) and Ether ($ETH) ETF. The two ETFs will trade on the Australian Stock Exchange (ASX). ASIC released a set of guidelines for the Exchange Traded Products (ETPs) after months of discussions among regulators.
The new set of guidelines will allow firms to launch crypto pegged ETFs that would make way for direct investments in crypto or adjacent digital asset markets. ASIC Commissioner Cathie Armour said.
“Crypto-assets have unique characteristics and risks that must be considered by product issuers and market operators in meeting their existing regulatory obligations. The good practices we published provide practical examples of how these obligations may be met, in a way that maintains investor protections and Australia’s fair, orderly and transparent markets.”
The approval comes just weeks after the US SEC approved the first futures market pegged Bitcoin ETF.
World Embraces Bitcoin ETF
The first Bitcoin ETF was approved in North America in Canada in the form of Purpose Group’s Bitcoin ETF. The first ETF turned out to be a success and made many Bitcoin proponents belive that the US would approve one shortly. The BTC Futures ETF was an instant hit as many had predicted, given the US has at least a 10X larger market than the North American market.
Even though the US SEC took nearly three quarters to approve one, it launched with a bang. ProShares became the first to get the US SEC nod and it traded over a billion dollars on the first day. It also broke the 18-year record to become the fastest to gain $1 billion in assets within 2 days. The success of Bitcoin ETFs proves the mainstream market is ready for crypto investment. Thus a regulated investment option opens more avenues for institutional investors.