Australia’s ASIC could Give Greenlight for Bitcoin ETF

The Australia Securities and Investments Commission (ASIC) has approved cryptocurrency products that involve bitcoin and ethereum. This development shows that fund managers that want to launch ETFs in Australia may soon be able to do so.

The regulatory body has been in a consultation phase with industry experts regarding various crypto products. In its latest response, the regulatory body issued a set of requirements aimed at fund managers who want to offer ETFs.

ASIC Likely to Approve Bitcoin ETF

In a statement issued on Friday, the regulator stated that “We recognize the interest in, and demand for, ETPs and other investment products that hold crypto-assets in Australia. However, we are also aware of the real risk of harm to consumers and markets if these products are not developed and operated properly.”

The ASIC has given several requirements that fund managers need to meet. Among these requirements is having a custodial crypto expert. This custodial expert will make sure that crypto assets are held safely and securely.

The other requirement is that the firms that want to launch crypto ETFs will have a bare minimum of $10 million on net tangible assets. They also need to adhere to risk management, disclosure and pricing requirements.

Requirements to Protect Investors

The commissioner of the ASIC, Cathie Armour, spoke of the requirements provided stating that they were necessary to reduce the level of risks that investors are exposed to when they invest in these products. She stated that firms that are issuing these products needed to consider the specific characteristics and risks they posed.

“The good practices we published provide practical examples of how these obligations may be met, in a way that maintains investor protections and Australia’s fair, orderly and transparent markets.”

This announcement comes as ETFs become popular topics of discussion in the crypto space. After the US approved Bitcoin futures ETF, the price of Bitcoin hit the roof as investor interest grew.

The ProShares Bitcoin futures ETF in the US attracted interest, and its trading volumes reached $1 billion on the first day. The ETF became the second-highest traded ETF on the first day.

Your capital is at risk.

Read more:

• How to buy cryptocurrencies
• How to buy bitcoin