Australia’s first Bitcoin ETF is reportedly to go live next week

    20 Apr 2022
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    Australia’s first Bitcoin exchange-traded fund, Cosmos Asset Management’s Bitcoin ETF, will be listed on the Cboe equities trading platform next week, Australian Financial Review reported on Tuesday. The report suggested the country’s clearinghouse, ASX Clear, confirmed that four market participants agreed to meet its stringent margin requirements.

    According to a report, an Australian clearinghouse controlling access to the country’s equity capital markets, ASX Clear, is expected to approve a Bitcoin exchange-traded fund (ETF). The thumbs up to what is said to be Australia’s first Bitcoin ETF became possible after three institutional participants and one retail participant reportedly agreed to the clearinghouse margin requirements.

    The four participants agreed to provide ASX Clear’s required margin of 42% before it allowed trading in the ETF, the report said. This requirement was needed to cover the settlement risks that are associated with Bitcoin.

    Hamish Treleaven, the CEO of ASX Clear, stated: “We are now at our minimum number of clearing participants and that means we are good to go.”

    He added that the clearinghouse will consequently issue a notice that gives market participants seven days’ notice of ASX Clear’s regulatory approval. The notice, according to the report, is intended to give brokers, clearers, investors, and market makers time to prepare for the ETF.

    The Cosmos Asset Management Bitcoin ETF will be the only Bitcoin ETF product available when trading commences on the Cboe trading venue on April 27, the report said. There are expectations that $1 billion will roll into the Bitcoin ETF once it is listed.

    The report noted that the approval of Cosmos Asset Management Bitcoin ETF likely means other trading venues such as NSX might also list a Bitcoin ETF.

    At the same time, the United States Securities and Exchange Commission (SEC) keeps rejecting multiple applications per year and has only allowed two Bitcoin futures ETFs to go live.

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