Australia’s first spot Bitcoin ETF, Monochrome Asset Management’s IBTC, is set to debut, making it the nation’s first ETF to directly hold the cryptocurrency. The approval from the Australian Securities & Investments Commission (ASIC) and Cboe Australia reveals Australia’s commitment to current global trends in crypto-related ETFs.
This development follows the approval of spot Bitcoin ETFs in the U.S. in January 2024, with regions like Hong Kong and Australia to taking steps to approve players within their markets.
Australia’s cryptocurrency market is expected to grow significantly over the next few years. According to Statista, the market is projected to expand by 10.15% from 2024 to 2028, yielding a market volume of approximately $1650 million by 2028.
Several popular cryptocurrency exchanges already operate in Australia, including Cointree, BTC Markets, and Independent Reserve. These platforms offer services ranging from buying, selling, and trading cryptocurrencies, to wallet storage, and advanced trading features.
Before the Australian Bitcoin ETF approval, the first approval of Bitcoin spot ETFs by the US Securities and Exchange Commission (SEC) in January 2024 resulted bitcoin price increase. Although, Bitcoin had already rallied 162% in the previous 12 months in anticipation of the ETF approvals.
In other news, the Hong Kong spot bitcoin and ether ETFs performance leaves many wondering
The approval of the spot Bitcoin ETFs was expected to have a positive impact on the crypto market outlook, attracting more institutional investors and increasing liquidity and stability.
However, the ECB argued that the approval does not change the fact that Bitcoin is still not suitable as a means of payment or investment and that its fair value remains zero.
Additionally, when the Hong Kong spot Bitcoin ETF was approved, Bitcoin experienced a positive reaction in the market. Bitcoin gained around 3% after dropping to as low as $61,300 over the weekend following the approval.
