The Australian Securities and Investments Commission Approves Bitcoin and Ether Spot ETFs

The Australian Securities and Investments Commission (ASIC) has approved the world’s first spot Bitcoin ($BTC) and Ether ($ETH) exchange-traded funds (ETFs). The two exchange-traded funds will be listed on the Australian Securities Exchange (ASX). Following months of debate among regulators, ASIC produced a set of rules for Exchange Traded Products (ETPs).

The new set of rules will enable corporations to construct crypto-denominated exchange-traded funds (ETFs), paving the door for direct investments in cryptocurrency and related digital asset markets. Cathie Armour, Commissioner of ASIC, said.

“Crypto-assets have unique features and hazards that product issuers and market operators must consider while complying with current regulatory requirements. The excellent practices we presented demonstrate how these duties may be accomplished while still protecting investors and preserving Australia’s fair, orderly, and transparent markets.”

The clearance comes only weeks after the US Securities and Exchange Commission authorized the first Bitcoin futures market-pegged exchange-traded fund.

The World Adopts Bitcoin ETF

In North America, the first Bitcoin ETF was authorized in Canada, in the shape of Purpose Group’s Bitcoin ETF. The first ETF was a success, convincing many Bitcoin proponents that the US will soon approve one. The BTC Futures ETF was an immediate success, as many expected, given that the US market is at least tenfold the size of the North American market.

Even though it took almost three quarters for the US Securities and Exchange Commission to authorize one, it debuted with a boom. ProShares was the first to get approval from the US Securities and Exchange Commission, and it traded over a billion dollars on its first day. Additionally, it established a new 18-year record for the quickest acquisition of $1 billion in assets in less than two days. The success of Bitcoin ETFs demonstrates that the mainstream market is prepared to invest in crypto. Thus, a regulated investment option expands institutional investors’ options.

Also Read: The Biden Spending Bill Closes A Tax Loophole On Cryptocurrencies