Australian Regulators May Approve Bitcoin ETFs Soon

A number of cryptocurrency-related ETFs will soon approve by Australia’s corporate regulator.

Fund managers wanting to launch Bitcoin spot exchange traded funds have received early permission from the ASIC.

The Australian Securities and Investments Commission (ASIC) has given fund managers who an early green light for trading Bitcoin ETFs.

After ASIC approved the spot ETFs, many Australian funds have already started the application procedure.

The corporate regulators published new recommendations for the field, detailing a draught of regulatory standards for funds keen to sell Bitcoin spot ETFs, after months of consultation with specialists in the Bitcoin and crypto industries.

The Australian Securities and Investments Commission (ASIC) released a statement on Friday saying,

“We recognise the interest in, and demand for, ETPs and other investment products that hold crypto-assets in Australia.”

Fund managers will be obliged to designate a Bitcoin custodial specialist who will be “needed to ensure crypto-assets are retained in safe and secure custody,” according to one requirement.

Keeping Bitcoin private keys safe and secure means storing them in air-gapped cold storage and using wallets that follow “strong physical security procedures.”

According to the Sydney Morning Herald, redundant backups of seed phrases stored in geographically distinct locations are also in requirement.

This comes barely a week after Valkyrie and ProShares introduced the first Bitcoin futures ETFs in the US.

Many in the United States are looking forward to the establishment of a Bitcoin spot-based ETF, which is seen as a safer investment vehicle that can monitor the price of Bitcoin more closely.

Meanwhile, In an event, the upcoming spot ETFs in Australia are a positive step in educating traditional investors about Bitcoin and spreading adoption.

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