Australia has gathered funds and is ready to jump onboard the Bitcoin ETF bandwagon that is taking over the world. The country could have its products ready to launch by the middle of 2022, as long as regulators agree.
The news comes from a report in the Sydney Morning Herald. According to the report, a number of managers are preparing for an inevitable influx of Bitcoin ETFs. Earlier this month, American regulators granted a green light to a similar product and regulators elsewhere in the world have now found themselves under pressure to follow suit.
The Sydney Morning Herald noted that “currently, crypto ETFs aren’t able to operate in Australia due to regulatory concerns over asset custody,” adding that regulators like the Australian Securities and Investments Commission were “currently finalizing a review into the feasibility” of ETFs and how they would work in the market.
The report quoted the CEO of Betashares, Alex Vynokur, who stated that his company was among those hoping to launch an Australian Bitcoin ETF when regulators give permission. He said, “At the moment, we’re seeing some stats in Australia that well over a million Australians own an investment in cryptocurrencies directly. We do think that over time we will see Bitcoin and hopefully other cryptocurrency exchange-traded funds available.”
Heath Behncke, managing director of Holon, said that he “expects an Australian Bitcoin ETF could be launched by mid-2022,” and hopes that Holon can be a frontrunner when they begin to launch.
The managing director went on to say, “I definitely think there’s a lot of investors keen on a bitcoin ETF, but it’s still early in conversations. There’s definitely a pent-up demand for it.”
The fund manager’s aspirations may be supported by recent events in the Australian parliament. Senator Andrew Bragg recently submitted a report recommending that Australia set up cryptocurrency custody protocols.
According to Behncke, this would be a critical part of streamlining crypto ETFs in the country. He also explained that overseas custody in more crypto-friendly regimes could provide an alternative.
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