Reports confirm that the Australian Securities Regulators have finally accepted Bitcoin ETFs in the country.
A report shared by Business Insider highlights that the Australian Securities and Investments Commission (ASIC), has now officially issued the approval of Bitcoin ETFs in Australia, giving a green signal to fund managers that were looking for ways to implement Bitcoin ETFs in the space. Receiving the news of the approval, different funds around Australia are already working on the formalities for applications that are to be submitted and processed. Reports have also revealed that the Australian Securities and Investments Commission has been actively working with multiple Bitcoin and crypto experts for many months, in order to come up with a new set of strategies that would assist in the successful launch of Bitcoin ETFs.
Requirement Information
A statement was brought up by the ASIC on Friday, which stated that the authorities are fully aware of the great interest and demand levels of Bitcoin ETFs and other crypto-related products in the Australian space, so for them to be approved, there are a few requirements that need to be kept in mind.
Also read:Firstly, fund managers are required to hire a Bitcoin custodial specialist that would keep his full focus on the security and protection of crypto assets. The Sydney Morning Herald suggests that if the assets are to be secured, Bitcoin private keys are to be put into cold storage, by utilizing wallets that will help maintain a high level of strong physical security levels.
Secondly, backups of seed phrases are supposed to be stored in multiple separate secure locations, to maintain safety and integrity.
And lastly, Funds are required to possess tangible assets that have a minimum value of $10Billion, in order to successfully launch a Bitcoin ETF and must also follow the appropriate rules and regulations, in regards to price and risk management.
Why only Bitcoin ETFs?
The ASIC was asked about the approval of only Bitcoin ETFs, to which it responded by saying that the ASIC knows about how various cryptocurrency assets have a completely different set of “features and characteristics”, but they think that only a few of them are worthy of being utilized in “a registered managed investment scheme”.
The news regarding the launch of Bitcoin ETFs in Australia has come out just a week after two other names, Valkyrie and ProShares successfully managed to launch Bitcoin Futures ETFs in the USA.
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