Family offices in Australia are reportedly piling into digital assets as fund managers compete to list the country’s first exchange-traded fund with cryptocurrency.
VanEck and BetaShares each filed filings with the Australian Securities Exchange (ASX) after industry speculation was denied in March that the exchange opposed such products. The ASX confirmed that it had received formal requests from several other investment managers willing to launch their own Bitcoin ETFs.
Earlier this week, Arian Neiron, CEO of VanEck in the Asia-Pacific region, stated that the movement of crypto assets had become more mainstream and that the Bitcoin ETF on the ASX could democratize crypto assets for all types of investors.
Australian ETF provider BetaShares also confirmed an ASX application, but did not specify whether it was planning a Bitcoin product or a product that is generally supported by digital assets.
Managing Director Alex Vynokur stated that there is significant demand for such products, adding:
“From our point of view, a regulated structure of an ETF is more suitable for a significant number of investors [than] Buying Bitcoin or other cryptocurrencies on unregulated exchanges. “
The ASX declined to speculate or comment on the requests, but stated that it is closely monitoring developments regarding publicly traded investments in Bitcoin and other cryptocurrencies.
The moves have been viewed as bullish by investors Down Under as Australia’s wealthiest families begin to diversify their portfolios with crypto assets.
According to a report by Business Insider Australia, publicly traded blockchain investment company DigitalX has been helping a growing number of family offices looking to invest in the mature space of digital assets. CEO Leigh Travers said investors are replacing their gold portions of portfolios with bitcoin, adding:
“The biggest change was in institutional interest, which has helped it grow from a speculative asset to one that is part of a diversified portfolio and has the strongest macro-winds of any investment I think can.”
Travers cited DeFi as a factor that set this bull run apart from the previous one in 2017/18.
The report found that the average family office in Australia and New Zealand controls more than $ 600 million each, and the move to crypto assets signals how ubiquitous the asset class is becoming.
As reported by Cointelegraph, the Australian Securities and Exchange Commission wants crypto firms to work with them to promote innovation in the region.
At the end of April, the US SEC delayed the decision on VanEck’s Bitcoin ETF until June 17.