Fund managers have welcomed the regulator’s finding from a cryptocurrency consultation which gives early approval to the launch of cryptocurrency exchange traded funds (ETFs).
Last week, the Australian Securities and Investments Commission (ASIC) announced the findings of its consultation on areas such as admission and monitoring standards, custody of crypto-assets, pricing methodologies, disclosure and risk management.
It had also introduced a ‘crypto-asset’ category in the licensing application for responsible entities and funds must have $10 million in net tangible assets.
So far, the approvals only applied to Bitcoin and Ethereum but was expected to be extended in the future.
Following the announcement, both VanEck and BetaShares announced they both had plans to launch Bitcoin ETFs in the future.
Alex Vynokur, chief executive of BetaShares, said: “ASIC has taken a significant step in providing a clear path for established cryptocurrencies such as bitcoin and ether to be made available to Australian investors via a familiar ETF structure.
“This is a welcome development for those investors and financial advisors who are seeking crypto exposure, but are uncomfortable with buying and selling cryptocurrencies on unregulated exchanges,” Vynokur said.
“In many ways, the inherent benefits of a regulated ETF – convenience, transparency and cost effectiveness – are additive for many investors seeking exposure to cryptocurrencies.
“We look forward to working with all relevant parties to bring a cryptocurrency ETF to Australian investors in the near future.”
Irfan Ahmad, APAC product lead at State Street Digital, described the move as “progressive” and said it was step towards integration of cryptocurrency into Australia’s financial system.
“Client demand for investment in digital assets, including cryptocurrencies, is on the rise globally, and Asia Pacific is no exception to that trend. We are seeing higher demand to service those crypto-assets,” Ahmad said.
Shane Stevenson, chief executive of Cointree, said the move would reassure companies that the Australian regulator was looking favourably towards cryptocurrency.
“This is an incredibly positive sign for the crypto industry. It’s the first time I’ve seen an Australian body publicly take a positive stance on cryptocurrencies,” Stevenson said.
“If any investors had any concerns whether Australian regulators would act unfavourably towards crypto, this move from ASIC will remove a lot of those concerns.”
