A recent report suggests that Australia's leading exchange, the Australian Securities Exchange (ASX), may soon authorize spot Bitcoin exchange-traded funds (ETFs). According to Monochrome CEO Jeff Yew, these ETFs could attract between $3 billion to $4 billion in inflows over the initial three-year period.

The ASX is considering the approval of several spot Bitcoin ETFs by the end of 2024, following similar moves by issuers in the United States and Hong Kong. Applications from VanEck Australia and local ETF-focused fund manager BetaShares are reportedly poised for approval before the year's end, as revealed by anonymous sources familiar with the matter to Bloomberg.

The surge in spot Bitcoin ETF applications follows the successful approval of Bitcoin ETFs in the United States, which have collectively accumulated $53 billion in assets under management (AUM) across eleven distinct products. Justin Arzadon, BetaShares' head of digital, sees this trend as a testament to the enduring presence of digital assets.

Jeff Yew, CEO of Monochrome, highlighted Australia's significant interest in cryptocurrencies, projecting substantial net inflows of $3 billion to $4 billion within the first three years of Australian spot Bitcoin ETFs. Yew emphasized the demand from fund managers seeking exposure to Bitcoin and self-managed super fund (SMSF) investors, alongside a notable interest from retail investors.

SMSF investors currently hold direct exposure to Bitcoin on crypto exchanges, which Yew views as risky, likening it to a potential "ticking time bomb." In contrast, Bitcoin ETFs offer a regulated and safer avenue for investors to access digital assets.

Monochrome initially applied for a spot Bitcoin ETF with the ASX in July 2023 but later shifted its application to Cboe Australia due to perceived delays in the approval process. Yew expressed optimism regarding the approval of his firm's application by Cboe Australia in the coming weeks, citing the exchange's more transparent and realistic listing framework compared to ASX's recent regulatory challenges.