Australia Set to List First Bitcoin ETF on Cboe Next Week

Australia’s equities regulator has approved the listing of the country’s first Bitcoin Exchange-Traded Fund (ETF) to be listed on the Cboe equities trading platform, local media outlet AFR reported Tuesday.

Australia’s first Bitcoin ETF to go live on Cboe

According to the report, the country’s major equity markets clearing house, ASX Clear, has approved Cosmos Asset Management to list its bitcoin ETF on Cboe next week.

ASX Clear had reportedly demanded a 42% margin, needed to cover the settlement risks for the volatile digital asset, to allow a bitcoin ETF to start trading in the country. It quickly acquired four participants who were willing to cover the initial margin requirement.

Per the report, three of the participants are institutional-grade participants, in addition to a “significant retail clearing participant willing to provide the 42% margin demanded by ASX Clear.”

“We are now at our minimum number of clearing participants and that means we are good to go,” Hamish Treleaven, the Chief Risk Officer at ASX said.

Interestingly, rather than investing in bitcoin directly, the Cosmos Asset Management Bitcoin ETF will invest in the shares of Toronto-based Purpose Investment’s Bitcoin ETF. 

The Purpose Bitcoin Fund is the first bitcoin ETF launched in Canada, which accumulated a record $1 billion in assets under management (AUM) in less than two months after its launch.

The Cosmos Bitcoin ETF will be able to start trading on the Cboe on April 27. The report added that there are ongoing speculations that inflows into the fund will hit $1 billion once it goes live.

According to the report, ASX Clear’s approval of the Cosmos Bitcoin ETF could pave the way for other trading platforms, including Australia’s National Stock Exchange (NSX) to also list a bitcoin exchange-traded fund.

U.S. Regulators Maintain Stringent Stance on Bitcoin ETFs

While regulators in several other jurisdictions are softening their stance and approving bitcoin ETFs, U.S. regulators are still adamant about approving one.

The U.S. SEC has continued to reject bitcoin spot ETF applications, citing fraud and manipulation prevention risks, as well as investor protection. Earlier this year, the financial regulator rejected the bitcoin ETF proposal submitted by First Trust and Skybridge Capital.

A recent survey by Nasdaq has, however, revealed that 74% of financial advisers will invest in spot crypto ETFs if they are made available.

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