By Alicia Maher
Australian financial regulators have approved the launch of the country’s first BTC ETF. This ETF will be launched on the Cboe exchange platform next Thursday. The resident’s participation in the launch would prove whether the demand for crypto by Australians was actual or fueled by institutional crypto players.
The local media firm, AFR, was the first to confirm the rumors surrounding the news. The report added that the regulators had to lay out strict measures which the market participants must heed before approving the BTC ETF.
Four market players have agreed to stringent measures of ASX Clear (one of the most popular clearinghouses on Australia’s equity capital market). They will be among those launching their ETPs next week. One of the regulator’s requirements is that a BTC ETF must have enough funds to settle any risks that investors may incur with their investment in the ETP.
The AFR further reported that three out of the four players are institutional-level market players, while the last is a prominent retail market participant. The ASX Clear requested that interested participants must be ready to pay a 43% margin before they can launch a BTC ETF for investors. A top-level officer with ASX, Hamish Treleaven, stated that “we have reached the minimum number of clearing market players. Thus, we can have a BTC ETP.”
The Launch Will Happen Next Thursday
Treleaven added that the regulator would notify all market players on April 20 that they have the regulatory permission to launch their ETP. Hence, all those involved in the launch can make adequate preparation to launch their ETPs. However, trading on the Cosmos Asset Management BTC ETF will begin on the Cboe exchange next Thursday.
This ETF was the first to be approved by the ASX Clear, and that’s why trading can begin on it next Thursday. Industry experts predict an inflow of $1B into cosmos’ BTC ETP on launch day. However, some analysts claim that the ASX had deliberately delayed the approval of a BTC ETF to protect ASX’s trade volume against any competition.
It is noteworthy that this ASX Clear announcement coincides with a 2-year commemoration of the widely-acclaimed letter written by Australia’s financial watchdog to a BTC advocate notifying the advocate that it was illegal to sell any BTC ETP.
Australia’s CBA Addresses Fake Rumors
On Monday, news started circulating in various media that Australia’s Commonwealth Bank has signed an agreement with a crypto trading platform to assist interest investors with making headway in their crypto investments. However, the bank has addressed the rumors today by issuing an official statement. The bank stated that the talks were utterly untrue.
It added that it asked the social media where the news was released to take down such news or be sued. Australia has had to address several crypto-related issues and rumors recently. A few months ago, Andrew Forest (the richest man in Australia and founder of FMG) sued Meta founder, Mark Zuckerberg, stating that the social media platform allowed his face to be used in promoting a crypto-related Ponzi scheme.