(Kitco News) – The approval of multiple spot Bitcoin (BTC) exchange-traded funds (ETFs) in the U.S. has brought a new degree of legitimacy to the top digital asset, and multiple countries are looking to follow suit, including Australia and Hong Kong.
According to a Monday report from Bloomberg, ASX Ltd., which handles around four-fifths of Australia’s equity trading, is expected to approve the first spot BTC ETFs for trading before the end of 2024.
The insider take was provided by people familiar with the matter who asked not to be identified as the information is private. Among those in line to offer new products are Van Eck Associates Corp. and BetaShares Holdings.
A spokesperson for Sydney-based BetaShares confirmed during an interview that they are working toward launching a product on the ASX, while DigitalX, another local firm, noted in their mid-year earnings report that they had filed an application. VanEck, which offers similar products in the U.S. and Europe, resubmitted their application in February.
The US inflows “prove digital assets are here to stay,” Justin Arzadon, head of digital assets for BetaShares, told Bloomberg. He added that the company has reserved ASX tickers for spot-Bitcoin and spot-Ether ETFs.
An ASX representative said the exchange “continues to engage with a number of issuers that are interested in admitting crypto asset-based ETFs” but stopped short of providing a timeframe.
Jamie Hannah, deputy head of investments and capital markets for VanEck Australia, said the country’s $2.3 trillion pension market could be a good source of inflows into Bitcoin via the spot-crypto funds. She noted that roughly a quarter of Australia’s retirement assets reside in “self-managed superannuation programs” that allow individuals to pick their investments.
With self-managed super funds, brokers, financial advisers, and platform money, “there is a large enough addressable market here to get this ETF to an adequate size,” Hannah said.
And according to DigitalX Chief Executive Officer Lisa Wade, Australians could allocate up to 10% of their portfolios to cryptocurrencies given their potential as “financial rails.”
That said, crypto fans shouldn’t expect blowout inflows capable of moving the market at launch as Australia has already debuted multiple spot-BTC ETFs, and thus far, the response has been muted.
Cosmos Asset Management launched a spot Bitcoin ETF in 2022 on CBOE Australia, the country’s junior bourse that accounts for less than a fifth of equity trading volume, but delisted the fund later that year after sub-par inflows.
The Global X 21Shares Bitcoin ETF launched the same year and currently holds approximately $62 million in assets. Along with the recent applications filed with ASX, Monochrome Asset Management, a company founded by former Binance Australia Chief Executive Officer Jeff Yew, has applied to launch its own Bitcoin ETF on CBOE Australia.
Hong Kong ETF debut underwhelms
The highly-anticipated launch of multiple spot Bitcoin and Ether (ETH) ETFs in Hong Kong took place last night but the response has been underwhelming.
After the first day of trading, engagement with the ETFs has fallen short of expectations as the six products launched saw combined trading volumes of 87.58 million HKD, equivalent to $11.19 million, based on Hong Kong Stock Exchange data.
?JUST IN: The first day of Hong Kong ?? Spot #Bitcoin & #Ethereum #ETFs volume traded:
? #BitcoinETF: $8.8 million
? #EthereumETF: $2.6 million pic.twitter.com/Xipdg4eE5P— Crypto Rand (@crypto_rand) April 30, 2024
The ETF issuers anticipated volumes above $100 million, so the subdued response has disappointed and failed to provide a boost to Bitcoin’s price, which is trading below $61,000 at the time of writing.
The six newly introduced spot Bitcoin and Ethereum ETFs were issued by China Asset Management, Harvest Global, Bosera, and HashKey
Data provided by HKEX shows that China Asset Management’s “ChinaAMC Bitcoin ETF” led in trading volume with HK$37.16 million during the initial trading session, while their Ether ETF led the field with a volume of HK$12.66 million.
The spot Bitcoin ETF from Harvest recorded HK$17.89 million in volume, while their Ether ETF recorded HK$4.95 million. The Bosera HashKey Bitcoin ETF reported a volume of HK$12.44 million, and their ETH ETF saw HK$2.48 million in trading.
Some remain positive about the launch, including X user Block-AI, who said, “Not bad for Day 1. Asia often ramps up slowly, then volume explodes. Watching this trend closely.” Still, most in the crypto ecosystem were unimpressed and have mocked the hype surrounding the launches.
Hong Kong ETH and Bitcoin ETF launch in 1 picture.
$300 million "anticipated" volume
$11 million actual volume
This has got to be one of the worst predictions of all time. pic.twitter.com/7WfwzSylTE— WhalePanda (@WhalePanda) April 30, 2024
As for the Bitcoin price outlook following the Hong Kong debut, macro trader Jason Pizzino said they resulted in a “perfect test of the 50% level and closed lower on increased volume.”
“So far, this sign is indicating short-term weakness,” he said. “However, a close above $64,600 would signify short-term strength. Therefore, the ‘dying out’ saga continues as the trading ranges contract, sentiment fades and ATR diminishes. Only consolidation above key resistance levels would be invalidation of weakness and a return to strength in the short-term.”
