The ASIC – Australian Securities and Investment Commission gave green light to fund managers on its intention to approve Bitcoin spot ETFs soon.
The call for application for the ETFs has seen a huge response and this reflects the interest and the desire of investors and fund managers to get one. The regulators in a bid to ensure a haven for investors has undergone different consultation with financial experts in the crypto space and has released the new guidelines for involvement in the crypto market as well as detailed requirements for a BTC Exchange-Traded fund approval.
The motivation for this exercise is the awareness of the demand of people for ETFs which will create more accessibility to the crypto space for the residents of Australia.
A requirement for an ETF launch is strict adherence to the risk and pricing management obligations together with the availability of funds up to $10 million intangible assets.
As stated by the regulators, another requirement for approval is first a custodial expert appointment which will see to the safety and security of the digital assets in custody. Talking about the safety and security of digital assets, the storage of the crypto private keys should be in cold storage via wallets with trusted security practices.
Of all the assets in the crypto space, only BTC and another asset make the cut for approval and the ASIC in a statement revealed the basis for the choice. While every other asset has its variations when it comes to characteristics, features, operation, and risks involved, however, the essence of the proposal is to recognize the differences and choose the best for the investment environment of Australia.
Following the United States?
This positive affirmation from the top securities regulators in Australia came in the space of a week after the United States confirms the news of Valkyrie and ProShares launching Bitcoin futures exchange-traded funds. Many investors in the country have been waiting for the news, as it is a great opportunity for them to join the crypto space while it is still booming more safely. On the same hand, this is considered to be a similar result in Australia as the regulator is looking to educate traditional institutional and retail investors on the adoption of cryptocurrencies.