Crypto-ETF Approval in Australia

Not so new news in this article but well worth a read for the ETF enthusiasts who might want crypto exposure via diversified assets usch as crypto linked ETFs. On 29th October, ASIC (Australian Securities Commission) release the response to their Consultation Paper (CP343) which focused on Crypto-assets as underlying assets for ETPs and other investment products. The responses to this, if positive, would pave the way for crypto-based ETFs here in Australia. It came at the same time as crypto ETFs did launch but these gave indirect exposure (rather than owning underlying crypto assets they owned companies involved in the space).


Long story short but the response was positive and effectively meant that ASIC gave their greenlight approval to the creation of such as an ETF, however, this came with strict requirements. The next step is awaiting for either of the 2 major exchanges here (ASX or Chi-X) to approve the various applications submitted by potential issuers including BetaShares, VanEck, Cosmos Asset Management, Monochrome Asset Management to name a few.


The response was quite detailed and luckily the crew at Monochrome put together this 8 page summary which can be accessed here: https://monochrome.co/article/summary-of-asic-report-rep-705-response-to-submissions-on-cp-343/



In short, it appears that only major cryptocurrencies of Bitcoin (BTC) and Ethereum (ETH) satisfy the requirements of what type are permissible as an underlying asset.


No word yet on when approval or the first listing of an ETF will come but, if its anything like the popular crypto or blockchain ETFs listed so far (CRYP, DIGA and FTEC), it will be a fan-favourite from day one.

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