Australia’s First Bitcoin Tracking ETF Set To Go Live Next Week

Cosmos Asset Management’s product would invest in Canada’s Purpose Bitcoin ETF, North America’s first bitcoin spot ETF that went live last year.

While the US regulators continue to struggle to approve BTC spot ETF applications, Australia has reportedly following the Canadian route and will list its first-ever exchange-traded fund on the Cboe equities trading platform next week.

Australia’s first bitcoin ETF, however, would not invest in BTC directly, but rather in shares of Purpose Investment’s bitcoin ETF – North America’s first bitcoin spot ETF that began trading in early 2021. Cosmos announced partnership with Purpose Investments in February.

ASX Clear, the powerful clearing house at the center of Australia’s equity capital markets, now has four market participants willing to stump up the tough margin requirements needed to cover the settlement risks for this highly volatile asset.

ASX Clear had demanded a 42% margin to allow a bitcoin ETF to start trading under its umbrella. There are now three institutional grade clearing participants and one retail clearing participant reportedly willing to provide the necessary margin to trade a bitcoin product.

Hamish Treleaven, the chief risk officer, confirmed that the ASX now has a minimum number of clearing participants, meaning that they are good to go.

The executive will notify the market participants about the agency’s approval, which will give them a seven days notice to prepare for the new product.

The Cosmos Asset Management bitcoin ETF will be able to start trading on the Cboe equities trading exchange on April 27.

The Cosmos BTC ETF is a “fund of funds” as it invests in the Purpose Bitcoin ETF available for trading in Toronto, Canada.

Other asset management companies interested in listing bitcoin-linked ETFs in Australia include ETF Securities, VanEck Australia, BetaShares, and Monochrome Asset Management.