Australian authorities have given the green light to the country's first Bitcoin ETF, which will begin trading on the Cboe Australia securities and derivatives exchange next week.
While the United States has not yet decided whether to approve a Bitcoin ETF (Exchange Traded Fund), in Australia the authorities have given the green light to the first exchange-traded fund based on this cryptocurrency, which leads the market with a current capitalization of more than 787.500 million.
Australia’s first Bitcoin ETF, created by investment firm Cosmos Asset Management, will track the shares of the Purpose Bitcoin ETF (BTCC), the first exchange-traded fund tracking the spot price of BTC, launched by Canadian-based Purpose Investments last year.
According to local media AFR, Australia's first Bitcoin ETF will begin trading on the Cboe stock and derivatives exchange on Wednesday, April 27.
Australia and the rise of cryptocurrencies
The arrival of this first Bitcoin-based investment instrument on Australian soil will put cryptocurrencies in the spotlight for investors.
Through this Bitcoin ETF, Australian investors will have the opportunity to indirectly expose themselves to BTC volatility, which will open the door to new capital in the crypto industry. It is estimated that at launch, the Australian Bitcoin ETF could exceed $1.000 billion in liquidity.
In Australia, the growing popularity and demand for cryptocurrencies has led the government to study a possible regulatory framework for the crypto market, which would allow its development and, at the same time, guarantee the security of investors and the financial stability of the country.
What is a Bitcoin ETF?
A Bitcoin ETF is a financial instrument that allows trading in cryptocurrency within a traditional market or stock exchange, similar to stocks.
Due to their enormous potential to attract new capital to the cryptocurrency industry, ETFs have been among the most requested tools by the crypto community for years.
In the United States, the world's leading power, various companies and investment funds have been fighting to obtain approval from the Securities and Exchange Commission (SEC) for the creation of a Bitcoin ETF in the country; although, so far, the financial regulator has only given the green light to the creation of ETFs that track Bitcoin futures contracts, and not the price of BTC directly.
Bitcoin ETFs in the world
However, regulators in other countries around the world have opened the doors to investment in the crypto industry, authorizing the creation of financial instruments of this type that directly track the price of bitcoin and other cryptocurrencies in the market.
For example, Canada has the Purpose Bitcoin ETF (BTCC), the Evolve Bitcoin ETF (EBIT), the Cryptocurrencies ETF (ETC), the Advantage Bitcoin ETF, and the Fidelity Advantage Bitcoin ETF Fund, all of which are listed on the Toronto Stock Exchange (TSX).
In Brazil, financial regulators have authorized the creation of ETFs for Bitcoin and Ethereum, the two main cryptocurrencies on the market, as well as an ETF focused on decentralized finance (DeFi) and a Bitcoin ETF that claims to be the first sustainable and carbon neutral.
Bitcoin's price, at press time, is up 2% over the past 24 hours, trading above $41.300 per unit.
Continue reading: Nasdaq Investors Back Creation of US Bitcoin Spot ETF
