DigitalX recently announced that Coinbase would be its custody partner for its new spot Bitcoin ETF (BTXX). This move highlights Coinbase’s growing role in providing infrastructure support for Bitcoin ETFs worldwide. The DigitalX Bitcoin ETF (BTXX) aims to mirror Bitcoin’s performance by holding long-term BTC positions. The fund will not actively trade Bitcoin, except for facilitating redemptions and creating Bitcoin interests.
Coinbase will provide custody and advanced trading execution services for the DigitalX Bitcoin ETF (BTXX) in Australia. This partnership was confirmed in the official BTXX fact sheet released by DigitalX. The ETF was launched on July 12, following approval from the Australian Securities Exchange (ASX) on July 9. Coinbase has become a key partner and custodian for multiple spot Bitcoin ETFs in the United States and has supported the majority of recently approved Ether ETFs.
Custodians like Coinbase play a crucial role in the ETF market by securely holding digital assets on behalf of companies and individuals. The DigitalX Bitcoin ETF is not the first Australian spot Bitcoin ETF, as the country’s first Bitcoin ETF, VanEck Bitcoin ETF (VBTC), was launched on the ASX on June 20. VBTC provides exposure to Bitcoin by investing in VanEck’s US Bitcoin Trust (HODL) listed on the CBOE.
Australia has seen significant growth in crypto ownership and adoption, with a 17% ownership rate surpassing the global average. Research shows that over 1.1 million Australians own at least one form of cryptocurrency. The regulatory environment for cryptocurrencies in Australia remains challenging despite the growing interest and adoption. Binance Australia faced issues with Australian dollar deposits and withdrawals in 2023 due to third-party service provider problems, and ASIC conducted searches at its offices in 2023.
Overall, the partnership between DigitalX and Coinbase for the Bitcoin ETF (BTXX) demonstrates the increasing support for Bitcoin ETFs globally. With Coinbase’s role as a custodian, the ETF aims to track Bitcoin’s performance by holding BTC positions. This development showcases the growing adoption of cryptocurrencies in Australia, despite regulatory challenges. As the crypto market continues to evolve, partnerships like these play a vital role in providing investors with innovative ways to engage with digital assets.
