Australia's Largest Stock Exchange Approves It's Second Bitcoin ETF

Australia's leading stock exchange, the ASX, approved its second Bitcoin ETF, reflecting growing appetite for Bitcoin investment vehicles within the mainstream Australian market.

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VanEck Brings Bitcoin ETF to Australia's Main Stock Exchange

TheAustralian Securities Exchange (ASX) marked a milestone on Thursday with thelaunch of the country's first Bitcoin (BTC) exchange-traded fund (ETF) on itsmain stock market. The VanEck Bitcoin ETF (VBTC)debuted with approximately AUD990,000 ($660,429) in assets, signaling a growingappetite among investors for cryptocurrency-related products.

Australia's Main StockExchange Welcomes First Bitcoin ETF

Thelaunch comes after more than three years of discussions between fundmanagers and the ASX, as the exchange operator sought to ensure propersafeguards were in place. While the VanEck Bitcoin ETF will not directly own Bitcoin,it will invest in the US-listed VanEck Bitcoin Trust (HODL), whichmade its debut in January.

The launchof the VanEck Bitcoin ETF follows a wave of similar products hitting the marketin other countries. In the United States, investors have poured billions ofdollars into cryptocurrency ETFs since several products received regulatoryapproval in early 2024. HongKong also joined the trend in April, introducing six cryptocurrency funds,although investor interest there has been relatively subdued compared to the US.

The demandfor access to Bitcoin via a listed vehicle traded on ASX has been increasing,and many of our clients have told us that their clients are already positionedto have an allocation ready to invest, said Arian Neiron, CEO and ManagingDirector at VanEck Asia Pacific.

The first bitcoin ETF is now available on @ASX.Learn more about the VanEck Bitcoin ETF $VBTC.https://t.co/grfIje1BgF pic.twitter.com/JOyHzb20GN

While theVanEck Bitcoin ETF is the first fund of its kind to be listed on the ASX, it isnot the only cryptocurrency-related product available to Australian investors.The local subsidiary of CBOE Global Markets (CBOE) operates a competitorexchange that alreadyhosts several bitcoin ETFs.

Bitcoin,the world's largest cryptocurrency by market capitalization, has experienced asignificant resurgence in 2023, with its price nearly tripling since the startof the year. However, the digital asset's value has plateaued in recent monthsafter reaching a peak in March.

As theVanEck Bitcoin ETF begins trading alongside some of Australia's most well-knowncorporations, such as BHP (BHP) and Commonwealth Bank (CBA), it remains to beseen how investors will respond to this new investment vehicle and whether itwill pave the way for more cryptocurrency-related products on the ASX in thefuture.

The marketfor cryptocurrency ETFs is now eagerly awaiting the introduction of thefirst-ever physically-backed funds for Ethereum (ETH), the second-largestdigital asset by market capitalization. Although the US SEC acceptedpreliminary applications from issuers a month ago, the final approval hasnot yet occurred.

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Largest Aussie Bourse Greenlights First Bitcoin ETF Listing

Australias largest stock market, the Australian Securities Exchange (ASX), has approved the listing of the first Bitcoin exchange-traded fund (ETF) on its platform on 20 June. The issuer will be VanEck, and the instrument will be dubbed the VanEck Bitcoin ETF (VBTC).

Bitcoin ETF on ASX

The decision of the leading Australian stock exchange came after the success of Bitcoin ETFs in the United States, where 11 such instruments have been listed since January. Hong Kong also launched Bitcoin and Ether ETFs following the US; however, those instruments failed to gain traction due to the local market size.

The demand for access to Bitcoin via a listed vehicle traded on ASX has been increasing, and many of our clients have told us that their clients are already positioned to have an allocation ready to invest, said Arian Neiron, CEO and Managing Director at VanEck Asia Pacific.

We have been engaged with bringing a spot Bitcoin ETF to ASX since early 2021.

This is @vaneck_uss brand new #Bitcoin ETF marketing ad.Wonderful work team.Have you got to ONE #Bitcoin yet? pic.twitter.com/StBQyNnuBw

The Success of Bitcoin ETFs Drives More Listings

VanEck is one of the issuers of Bitcoin ETFs in the US market and has also applied to launch an Ether ETF. Although the US Securities and Exchange Commission approved the listing of Ether ETFs by American exchanges, it is yet to greenlight the individual Ether ETF applications by the issuers.

Interestingly, the first Bitcoin ETF in Australia was listed two years ago by CBOE Australia, the countrys second-largest stock exchange. The issuer of the first Bitcoin ETF in the Australian market was Global X 21 Shares Bitcoin ETF (EBTC), which made the listing in April 2022. Earlier this month, CBOE Australia also listed Monochrome Bitcoin ETF (IBTC) as the second Bitcoin ETF.

Australia's new #Bitcoin ETF (IBTC) has accumulated 46 BTC since launch pic.twitter.com/ywdSwdLH4c

We recognize Bitcoin is an emerging asset class that many advisers and investors want to access, Neiron stated in a recent press release. VBTC also makes Bitcoin more accessible by managing all the back-end complexity. Understanding the technical aspects of acquiring, storing, and securing digital assets is no longer necessary.

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‘Killer use case’: Citi says trillions in assets could be tokenized by 2030

Investment bank Citi is betting on the blockchain-based tokenization of real-world assets to become the next “killer use case” in crypto, with the firm forecasting the market to reach between $4 trillion to $5 trillion by 2030. That would mark an 80-fold increase from the current value of real-world assets locked on blockchains, Citi explained [...]

The post ‘Killer use case’: Citi says trillions in assets could be tokenized by 2030 appeared first on Crypto Breaking News.

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Australian stock exchange may consider listing tokenized real-world assets

The Australian Securities Exchange (ASX) is unlikely to directly list a cryptocurrency on its exchange but could consider an “appropriately-backed” tokenized real-world asset such as gold. Speaking to Cointelegraph, Dan Chesterman, the ASX’s CIO and group executive of technology and data said while there are hurdles for it to directly list a cryptocurrency the company [...]

The post Australian stock exchange may consider listing tokenized real-world assets appeared first on Crypto Breaking News.

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Blame game rages over ASX’s failed CHESS system blockchain upgrade

Digital Asset blames the ASX for not providing it with crucial information while the ASX says these claims are misleading.

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No Blockchain for Aussie Stock Market, RBA Is "Very Dissapointed"

<p class="MsoNormal">The Australian Securities Exchange (ASX) cancelled its plans to replace the current Clearing House Electronic Subregister System (<a href="https://www.financemagnates.com/tag/chess/">CHESS</a>) with a <a href="https://www.financemagnates.com/terms/b/blockchain/" target="_blank" id="be18ed01-45fc-4044-b447-06802a10dbcd_1" class="terms__main-term">blockchain</a> alternative in light of 'solution uncertainty'. Australian regulators and banking authorities expressed strong disappointment. The project has been under development for the last five years and costs more than $170 million.</p><p class="MsoNormal"><a href="https://www.financemagnates.com/institutional-forex/execution/asx-weighing-blockchain-transition-legacy-chess-system/">Since 2017</a>, the Australian Exchange has been working on a solution using <a href="https://www.financemagnates.com/terms/d/distributed-ledger-technology-dlt/" target="_blank" id="5f586236-27b9-47a7-8088-da7635d6aab2_1" class="terms__secondary-term">distributed ledger technology (DLT</a>) that would replace the 25-year-old CHESS used to manage trade settlements and record shareholdings.</p><p class="MsoNormal">Initially, the launch of the new solution based on blockchain technology was scheduled for 2020, but the project was <a href="https://www.financemagnates.com/institutional-forex/exchanges/asx-still-believes-in-blockchain-technology-but-delays-launch-to-q2-2021/">postponed</a> several times. It was explained by the need for additional testing, uncertainty caused by Covid-19 and some other impediments.</p><p class="MsoNormal">Eventually, ASX announced that it was abandoning further work on the project to reassess its design. Accenture has prepared an independent report stating that the system was too complex and the application completion rate after five years was 60%. As a result, determining the final launch time of the solution remained uncertain.</p><p class="MsoNormal"> "We began this project with the latest information available at that time, determined to deliver the Australian market a post-trade solution that balanced innovation and state-of-the-art technology with safety and reliability. However, after further review, including consideration of the findings in the independent report, we have concluded that the path we were on will not meet ASX's and the market's high standards. There are significant technology, governance and delivery challenges that must be addressed," Damian Roche, the Chairman of ASX, said.</p><p class="MsoNormal">"On behalf of ASX, I apologise for the disruption experienced in relation to the CHESS replacement project over a number of years."</p><p class="MsoNormal">ASIC and RBA Criticized the ASX Move</p><p class="MsoNormal">After the ASX's announcement, the Reserve Bank of Australia (RBA) and the Australian Securities and Investments Commission (ASIC) published a joint press release that called the move "a significant setback" for the Australian cash equity markets infrastructure. </p><p class="MsoNormal">"The announcement by ASX after many years of investment by both ASX and industry is very disappointing. ASX needs to prioritise developing a new plan to deliver safe and reliable clearing and settlement infrastructure. The Reserve Bank of Australia also expects ASX to maintain the current CHESS so that it continues to operate reliably and support confidence in Australia's cash equity markets," Philip Lowe, the Governor of the Reserve Bank, commented.</p><p class="MsoNormal">ASIC and RBA require ASX to ensure that the CHESS program is adequately supported to ensure the highest possible financial services standards for Aussie customers and investors. However, the regulator and the central bank want to resume work on the blockchain solution after reassessing its design. </p><p class="MsoNormal">In August 2022, ASIC <a href="https://www.financemagnates.com/forex/regulation/asic-reveals-4-year-plan-focus-will-be-on-tech-risks-and-chess-replacement/">revealed</a> its corporate plans for the next four years, focusing, among others, on supervising the CHESS replacement. The latest report may alter the institution's strategy.</p> This article was written by Damian Chmiel at www.financemagnates.com.

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Aussie stock exchange abandons blockchain plans, leaving $170M hole

The blockchain-backed upgrade in the works for nearly five years has potentially cost Australia’s primary exchange over $170 million.

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Australian Securities Exchange takes step towards tokenized asset trading

“There's a strong value proposition here that we can essentially tokenize any asset and bridge that into the ASX ecosystem,” said Zerocap CEO Ryan McCall.

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31% of young Aussies hold crypto despite being ‘risk averse’ — ASX survey

While young Australians are more interested in crypto, it’s the 25 to 49 year-olds who own the most.

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ASX Abandons Blockchain-Based System to Replace CHESS

Australian stock market operator, ASX, has abandoned its ambitious project to replace the legacy clearing and settlements system, CHESS, with a blockchain technology-based platform.

CHESS Is a 30-Year Old System

The decision to completely abandon the project was taken in a meeting on Wednesday, according to Reuters. The company will continue its work toward developing a CHESS replacement, but it will not involve blockchain or distributed ledger technology.

ASX's Project Director, Tim Whiteley, said in the meeting that the next attempt to develop a CHESS replacement would "go down the more conventional route, that is, without the focus on DLT (or) blockchain," adding "while we continue to explore all the options, certainly we will need to use a more conventional technology than in the original solution in order to achieve the business outcomes."

The exchange operator has already enhanced its eligibility criteria for its CHESS replacement Partnership Program, in which it allocated up to AU$ 70 million.

Replacing Legacy Infrastructure

ASX first announced its plans to replace the Clearing House Electronic Subregister System or CHESS with a blockchain-based system in 2016. The Aussie giant even hired a New York-based contractor Digital Asset to develop its CHESS replacement and took an ownership stake in the startup.

Initially, the new system was scheduled to be in place by 2021. However, that faced multiple delays. The earlier stance of ASX was to resurrect the blockchain-based project with a new strategy by the year-end, but now it has completely taken a new direction.

According to Whiteley, ASX's decision was fueled by the market feedback "into the implementation planning," as participants did not want a risky single-date changeover to new software.

CHESS is a 30-year-old system, and the replacement of this system with a blockchain-based system would be a significant use case of the technology behind cryptocurrencies. In late 2021, ASX said that its distributed ledger technology (DLT) as a Service platform, Synfini, was production ready. Developed on top of VMware Blockchain, the platform would be offered as a cloud service and will allow flexibility and scalability to ASX's customers as their usage grows.

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