Australia could soon be seeing cryptocurrency Exchange-Traded Funds (ETFs), following Canada’s steps and, most recently, the United States.
This change came as a follow-up to the country’s securities regulator issuing new guidelines for companies seeking to offer ETFs. Last week, the Australian Securities and Investment Commission (ASIC) announced the new “guidance on crypto-asset related investment products”.
Furthermore, with the new guidance, the regulator’s goal is to cover good practices for product issuers in establishing and operating related products. One of the biggest takeaways from the comprehensive set of guidelines is that the ASIC is open to a digital currency ETF.
The ASIC will allow market players to offer ETFs that invest directly in digital currencies and other adjacent assets such as miners or exchanges. The approval comes when the U.S. is in the news for approving the first ETF, which started trading on October 19, followed by a second ETF three days later.
Several Firms in the queue for a crypto ETF in Australia
In Australia, several firms have expressed interest in launching a cryptocurrency ETF. One of these, $20 billion ETF provider Betashares, recently revealed that once the regulator gives the green light, it will begin to work on its ETF. Claiming that Australia has over a million digital currency owners, CEO Alex Vynokur stated that this would provide an excellent market for the ETF.
The Australian financial regulator will hold ETF issuers to a high set of standards, it stated. It will mainly be stringent on custody, requiring all the issuers to store their assets in cold storage.