The Australian Securities Exchange plans to introduce the country’s first crypto-based exchange-traded fund (ETF) by the end of the year
The Australian Stock Exchange (ASX) plans to introduce the country’s first crypto-based exchange-traded fund (ETF) amid rising digital asset adoption institutions.
Australia’s first crypto ETF might launch by the end of the year
ASX is currently reviewing several ETF applications, and the first product is likely to launch later in the year. According to ASX CEO Max Cunningham, the exchange is spending more time reviewing digital assets amid growing mainstream adoption.
“Local issuers who want to bring these products to market are not ignoring it either. So we are spending an enormous amount of time focused on this.”
Cunningham notes that the current popularity of digital assets is well worth exploring. Given the great demand for digital assets in Australia, other crypto-related products will be well received. He admitted that since the previous applications were rejected, there was a perception that such crypto products were banned.
“Because we were turning down several spurious offerings five or six years ago, there’s a perception that we have banned this asset class, and we have categorically not got a ban on it.”
In addition, the official noted that the biggest fear is the protection of retail investors, who are susceptible to fraud. Cunningham says there is a need for transparency in this area.
Price manipulation is still another concern for ASX. Most specifically, Cunningham pointed to social media manipulation as an area of attention.
ASX is observing the Canadian market after the country became the first to introduce a bitcoin ETF. Cunningham noted that as a new asset class, more time is needed before an Australian asset class is announced.
A crypto ETF will likely drive crypto mainstream adoption in Australia. It will open the door for investors to include assets like bitcoin in their stock portfolios.
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