Australia could soon be seeing cryptocurrency exchange-traded funds (ETFs), following in the steps of Canada and, most recently, the United States. This is after the country’s securities regulator issued new guidelines for the industry, outlining the licensing requirements for companies seeking to offer ETFs, engage in token sales, facilitate trading, and more. Last week, the Australian Securities and Investment Commission (ASIC) announced the new “guidance on crypto-asset related investment products.”
ASIC is open to a cryptocurrency ETF.
The regulator’s goal with the new guidance 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 at a time when the U.S. has grabbed global headlines after approving the first ETF, which started trading on October 19, followed by a second ETF three days later.
Several firms have expressed interest in launching a crypto ETF.
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 a great 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.