Blockchain-focused asset manager DigitalX has received regulatory approval to launch its spot Bitcoin exchange-traded fund (ETF), which will be the second Bitcoin ETF to trade on the Australian Securities Exchange (ASX).
Launch Details and Significance
The DigitalX Bitcoin ETF will be listed under the ticker BTXX on July 12 at 10 am local time, the firm announced in a July 8 post on X. Describing the approval to list BTXX as a “watershed moment,” DigitalX CEO Lisa Wade emphasized the importance of the product.
“The DigitalX Bitcoin ETF is a spot ETF product that provides ASX customers with direct access to Bitcoin via a regulated and liquid fund structure,” Wade said. “It is exciting to see the growth and development of the digital assets markets reflected in this approval in Australia,” added DigitalX’s chair Toby Hicks.
DigitalX has partnered with investment management firm K2 Asset Management to act as the responsible entity and issuer of the spot Bitcoin ETF. Additionally, DigitalX will collaborate with cryptocurrency-focused investment firm 3iQ to promote and distribute the product both in Australia and internationally.
Previous Bitcoin ETF Launches
This approval comes just over three weeks after the ASX approved VanEck’s spot Bitcoin ETF on June 15, which commenced trading on June 20. The VanEck Bitcoin ETF (VBTC) closed its first trading day with $1.3 million in volume, a figure significantly lower than the $450 million daily average seen by the nine United States-based spot Bitcoin ETFs across their first 10 trading days.
Market Context and Competitors
Australian fund manager Betashares is also in pursuit of launching a Bitcoin ETF on the ASX, as reported by Bloomberg in April. The competition among firms to launch Bitcoin ETFs indicates a growing interest and acceptance of digital assets in mainstream financial markets.
| ETF Name | Ticker | Launch Date | Initial Volume | Responsible Entity | Promotional Partners |
|---|---|---|---|---|---|
| DigitalX Bitcoin ETF | BTXX | July 12, 2024 | TBD | K2 Asset Management | 3iQ |
| VanEck Bitcoin ETF | VBTC | June 20, 2024 | $1.3 million | VanEck | – |
| Betashares Bitcoin ETF | TBD | TBD | TBD | Betashares | – |
The approval of the DigitalX Bitcoin ETF is seen as a significant milestone for the Australian digital asset market. Experts believe that such products will facilitate greater participation from institutional investors and retail traders alike.
- Pro-ETF View: Advocates argue that Bitcoin ETFs provide a regulated and accessible way for investors to gain exposure to Bitcoin, promoting broader adoption.
- Cautionary View: Some analysts warn of the volatility associated with Bitcoin investments and advise potential investors to be aware of the risks involved.
The launch of the DigitalX Bitcoin ETF on the ASX marks another step towards integrating digital assets into mainstream financial markets. With the collaboration of K2 Asset Management and 3iQ, DigitalX aims to offer a secure and regulated investment vehicle for Bitcoin enthusiasts and investors. As more Bitcoin ETFs enter the market, the competition is likely to drive further innovation and acceptance of cryptocurrencies in Australia and beyond.
Featured image credit: DALL-E by ChatGPT