According to Bloomberg, Blockchain-focused asset manager DigitalX has secured regulatory approval to launch its spot Bitcoin exchange-traded fund (ETF), making it the second Bitcoin ETF to trade on the Australian Securities Exchange (ASX). The DigitalX Bitcoin ETF, listed under the ticker BTXX, will commence trading on July 12, 2024, at 10 am local time, as announced on July 8.
DigitalX CEO Lisa Wade described the approval as a “watershed moment,” emphasizing that the DigitalX Bitcoin ETF is a spot ETF product providing ASX customers with direct access to Bitcoin through a regulated and liquid fund structure. “It is exciting to see the growth and development of the digital assets markets reflected in this approval,” added DigitalX’s Chair Toby Hicks.
In partnership with investment management firm K2 Asset Management, which will act as the responsible entity and issuer, and cryptocurrency-focused investment firm 3iQ for promotion and distribution, DigitalX is poised to expand its reach both domestically and internationally.
The announcement follows closely on the heels of VanEck’s spot Bitcoin ETF approval on June 15, which began trading on June 20. VanEck’s Bitcoin ETF (VBTC) saw $1.3 million in volume on its first trading day, though this was significantly lower than the daily average volume of $450 million observed by nine U.S. spot Bitcoin ETFs during their initial ten trading days. According to ASX data, VBTC had over $475,000 ($700,000 AUD) in trading volume in the first five hours of July 9 trading.
Lisa Wade, CEO of DigitalX, expressed optimism about the new ETF’s potential to streamline institutional investors’ access to digital asset fund products. “I believe this will attract new entrants into the market and ultimately allow institutions to include Bitcoin and digital assets into strategic asset allocations,” said Wade.
The introduction of ETFs like BTXX and VBTC on the ASX signifies a growing acceptance and integration of digital assets into traditional financial markets. ETFs, known for their credibility and regulatory oversight, can significantly influence market sentiments by providing a secure and accessible way for investors to gain exposure to Bitcoin. The launch of these ETFs is expected to attract more institutional and retail investors, thereby increasing market liquidity and stability.
The ASX has seen a series of cryptocurrency ETF launches, including efforts by Betashares to list its Bitcoin and Ethereum ETFs. Prior to these developments, CBOE Australia had already listed several crypto ETFs, such as Global X 21Shares Bitcoin, Global X 21Shares Ethereum, and Monochrome Bitcoin, paving the way for mainstream adoption of digital assets.
As DigitalX prepares to launch its Bitcoin ETF, the move is anticipated to further bolster the credibility of cryptocurrency investments and defines Australia’s position as a significant player in the global digital asset market.
