DigitalX, a blockchain-focused asset manager, has recently received regulatory approval to launch its spot Bitcoin exchange-traded fund (ETF) on the Australian Securities Exchange (ASX). The approval makes DigitalX the second company to offer a Bitcoin ETF on the ASX, following VanEck’s recent approval. The DigitalX Bitcoin ETF, with the ticker BTXX, is scheduled to debut on July 12, making it a significant milestone for the company and the Australian digital asset investment market. DigitalX’s CEO, Lisa Wade, emphasized that the ETF will provide ASX customers with direct access to Bitcoin through a regulated and liquid fund structure.
To bring the spot Bitcoin ETF to fruition, DigitalX Bitcoin has partnered with investment management firm K2 Asset Management, which will act as the responsible entity and issuer of the ETF. Additionally, DigitalX will collaborate with cryptocurrency-focused investment firm 3iQ to promote and distribute the product both within Australia and internationally. The regulatory approval for the DigitalX Bitcoin ETF comes shortly after VanEck’s spot Bitcoin ETF was approved by the ASX, with trading commencing on June 20. Despite modest trading volume on its first day, the approval of these Bitcoin ETFs signifies a growing interest in digital asset investment products in Australia.
CoinShares, a digital asset and fintech investment business, reported significant inflows totaling $441 million driven by perceived buying opportunities resulting from recent price weakness caused by external factors. While exchange traded product (ETP) volumes remained relatively low at $7.9 billion, inflows into digital asset investment products remained robust. The approval of DigitalX’s Bitcoin ETF comes at a time when digital asset investment products are experiencing significant traction, indicating a growing investor interest in the crypto market.
The crypto market in Australia has witnessed notable growth in recent years, with a crypto ownership rate of 17% in the country, higher than the global average of 15%. However, the industry has also faced increased scrutiny, with instances like cryptocurrency exchange Binance Australia losing access to Australian dollar deposits and withdrawals and ASIC officials conducting searches at Binance Australia’s offices. Despite regulatory challenges, the approval of DigitalX’s Bitcoin ETF signals a positive development for the digital asset market in Australia, providing investors with more accessible avenues to invest in Bitcoin through regulated and liquid fund structures.
