Australia is set to list its first bitcoin exchange-traded fund (ETF) after the country’s clearinghouse, ASX Clear, confirmed that four market participants have agreed to meet its stringent margin requirements.
ASX Clear’s Margin Requirements
According to a report by the Australian Financial Review (AFR), three institutional participants and one retail participant committed to providing a 42% margin to cover settlement risks associated with bitcoin. ASX Clear CEO Hamish Treleaven stated, “We are now at our minimum number of clearing participants and that means we are good to go.” The clearinghouse will issue a notice giving market participants seven days to prepare for the ETF, allowing brokers, clearers, investors, and market makers to adjust their positions. The Cosmos Asset Management Bitcoin ETF will be the only product available when trading begins on the Cboe trading venue on April 27. Market expectations suggest that up to $1 billion could flow into the fund once it is listed.
The Regulator’s About-Face
This approval comes roughly two years after the Australian Securities and Investments Commission (ASIC) ruled out listing a crypto ETF in the country. However, the regulator shifted its stance after facing political pressure. The report noted that the approval of Cosmos’ ETF likely means other trading venues such as NSX may also list a bitcoin ETF. Industry observers view this as a significant milestone for Australia’s crypto adoption, paving the way for further institutional participation in digital assets.