Australian Securities Exchange Approves First Spot Bitcoin ETF
The acceptance of VanEck’s ETF by the country’s major stock exchange represents an important change in Australia’s position toward cryptocurrencies.
Australian Securities Exchange Greenlights First Spot Bitcoin ETF, Paving the Way for Crypto Investment Opportunities
Australia’s primary source stock exchange, the Australian Securities Exchange (ASX), has accepted the listing of the country’s first Bitcoin exchange-traded fund (ETF). VanEck, a well-known asset management business, will release the VanEck Bitcoin ETF (VBTC).
The clearance comes from Bitcoin ETFs’ significant success in the United States, where 11 Bitcoin ETFs debuted in January. Hong Kong followed the United States’ example in launching Bitcoin ETFs, showing a rising worldwide trend towards cryptocurrency investments. Introducing a Bitcoin ETF on the ASX demonstrates Australia’s eagerness to join the party.
VanEck Releases Aussie Bitcoin ETF
VanEck is one of the companies that issue spot Bitcoin ETFs in the United States. The firm’s product, VanEck Bitcoin Trust (HODL), has about $529 million in assets under administration at the time of writing, with a market capitalization of $660 million.
The licensing of the VanEck Bitcoin ETF (VBTC) in Australia comes five months after the United States Securities and Exchange Commission approved the debut of HODL on exchanges alongside other ETFs issued by prominent asset managers such as BlackRock, Ark Invest, Grayscale, Fidelity, and Bitwise.
VanEck said it has been negotiating with Australian regulators about establishing a spot Bitcoin ETF in the nation since early 2021. Due to regulatory difficulties, exchange framework issues, and a lack of ASIC licensing, VanEck resubmitted its proposal for the VBTC launch in February. The asset management promises that when it launches, VBTC will be Australia’s lowest-cost Bitcoin ETF.
“Bitcoin’s growth continues to change, with regulated access via an ETF being a reality in the United States, a crucial step toward worldwide adoption.
Despite barriers in Australia, including regulatory and exchange framework issues, as well as ASIC clearance, VanEck wants to lead the way in offering the first Bitcoin ETF to ASX investors,” the firm’s investment team stated.
Australia Builds Up Its Crypto Tax Compliance Requirements
In related news, the Australian Taxation Office (ATO) has launched a comprehensive attempt to improve tax compliance in the cryptocurrency sector by collecting personal and financial information from crypto exchanges, affecting up to 1.2 million user accounts.
This measure is part of the ATO’s plan for combating possible tax avoidance in the fast-growing cryptocurrency industry. The ATO seeks to track down traders who may have underreported their crypto-related activity, including transferring digital assets into fiat cash or utilizing them in transactions.
According to the ATO’s notification, the requested data includes a wide variety of personal information from users, including names, addresses, dates of birth, phone numbers, and social media accounts.
Additionally, the tax office collects transaction data such as bank accounts, wallet addresses, and cryptocurrency trading records.
To reduce financial risks and protect its citizens from gambling-related difficulties, the Australian government banned the employment of credit cards and cryptocurrencies for online betting.
This regulation, which goes into effect on June 11, aims to ban people from gambling with funds borrowed or digital currencies, encouraging responsible gaming habits across the country.
Effectiveness of Spot Bitcoin ETFs in Other Markets
VanEck is one of the US market’s Bitcoin ETF issuers, and it has applied to establish an Ether ETF. Although the US Securities and Exchange Commission has cleared the listing of Ether ETFs on American exchanges, providers have yet to submit individual Ether ETF applications.
Despite the growing interest among Australians, the success of spot Bitcoin ETFs in other major markets has affected the ASX’s decision. Notably, spot Bitcoin ETFs in the United States have generated $15.1 billion in positive capital netflows since their inception in January.
Interestingly, CBOE Australia, Australia’s second-largest stock exchange, listed the country’s first Bitcoin ETF two years ago. The first Bitcoin ETF in the Australian market was Global X 21 Shares Bitcoin ETF (EBTC), which debuted in April 2022. Earlier this month, CBOE Australia added the Monochrome Bitcoin ETF (IBTC) as the second Bitcoin ETF.
“We view Bitcoin as a growing asset class that many advisors and investors would like to access,” “Neiron said in a recent news release. VBTC also makes Bitcoin easier to acquire by handling all back-end complexities. Considering the technical requirements of obtaining, storing, and protecting digital assets is no longer required.”
Moreover, Hong Kong allowed spot Bitcoin and Ethereum ETFs two months ago. Despite not catching up with their US counterparts in terms of capital inflows, these financial products have sparked substantial investor interest.
The listing of VBTC is likely to open the door for more diverse cryptocurrency products on the ASX since it establishes a regulatory precedent for future approvals. In the United States, the introduction of spot Bitcoin ETFs had an impact on the authorization of spot Ethereum ETFs.
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