Just recently, Australian regulators have given BTC and ETH spot ETFs the green light. This is a very big deal and will influence the market quite drastically. In the US, even though we have ETFs, they are future ones and not spot. So, the approval of a spot one in Australia is a major step forward. This happened after the Australian Securities and Investments Commission (ASIC) released a set of guidelines and requirements for crypto exchange-traded products.
The new BTC and ETH spot ETFs
Bitcoin and Ethereum spot ETFs were made possible by the ASIC’s new regulations and requirements. As per the new law, crypto ETFs can invest in cryptocurrencies or adjacent assets like miners and exchanges. Many local funds are already showing interest in launching ETFs in Australia. Like the US SEC, the ASIC has also been pushing the approval of the new ETFs. But after the new laws were established, we got the good news.
ETFs are a very big deal for investors as it allows them to gain exposure to different assets without directly buying in the same. For example, one needs to go on a crypto exchnage and then hold their coins on the platform or a hardware or software wallet. But in the case of an ETF, one just can buy it from their stockbroker. It also helps in many tax benefits and is a good way to gain indirect exposure to the market.
Some important things to be kept in mind
The firms that are planning to launch their own ETFs in Australia have to follow a strict set of guidelines. Most importantly, they need to hold all of the Bitcoins people are buying in cold storage and the password as well. There should be strong security protocols to keep Bitcoins safe. The Australian regulators also said that in case the funds of the investors are lost or stolen, it expects the ETFs to account for the same in the form of compensation. So, that means you can have even more peace of mind for your crypto holdings in an ETF.
What are your thoughts on the Australian regulators giving the green light for BTC and ETF ETFs? And do you think that Spot ETFs are much better than future ones? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.