Bitcoin ETF In Australia Has Been Approved For Launch Next Week

The Cboe equities trading platform will publish Australia’s first Bitcoin (BTC) exchange-traded fund (ETF) – Bitcoin ETF next week, serving as the country’s first big test of widespread client demand for cryptocurrencies.

According to a report by the Australian news outlet AFR, the clearing house that regulates access to the country’s equity capital markets would give the green light for the country’s first Bitcoin ETF after a sufficient number of market players agree to rigorous margin limitations.

ASX Clear, a powerful clearing house at the heart of Australia’s equity capital markets, now has four market participants willing to put their money where their mouth is and meet the stringent margin requirements required to cover the settlement risks associated with Bitcoin.

It is believed that there are currently three institutional-grade clearing participants and one big retail clearing player that are prepared to pay the 42 % margin required by ASX Clear before permitting trading in a Bitcoin ETF to commence. 

Chief risk officer at ASX, Hamish Treleaven, said: 

“We are now at our minimum number of clearing participants and that means we are good to go.” 

Bitcoin ETF is ready to trade on April 27

On Wednesday, April 20, Treleaven will send a notice to market participants telling them that ASX Clear has acquired regulatory approval.

Market makers, brokers, clearers, clearing participants, and investors will have seven days to prepare for the new product’s introduction.

In other words, the Cosmos Asset Management Bitcoin ETF, which is currently in front of ASX Clear, will be allowed to trade on the Cboe on April 27 when the market opens. When Australia’s first Bitcoin ETF goes public next week, it is projected to attract $1 billion in investment.

Opponents claimed that delaying the approval of ASX Clear’s application to trade a Bitcoin ETF was done to protect the ASX trading venue from competition.

Notably, the Australian Securities and Investments Commission (ASIC) wrote to a Bitcoin financial promoter two years ago, noting that a listed retail Bitcoin product was not permissible in Australia at the time.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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