Australian investors are speculating on the $2.3 trillion pension market for inflows in an attempt to emulate the success of spot Bitcoin exchange-traded funds (ETFs) in the United States.

Issuers are now focusing on the Australian market following the tremendous reception that the spot Bitcoin ETFs received upon their January launch in the US. BetaShares Holdings Pty and Van Eck Associates Corp. have arranged to list spot Bitcoin ETFs in Australia.

Australia Will Authorise Bitcoin ETFs on the Spot

Sources with knowledge of the situation indicate that by the end of 2024, Australia's major stock exchange, ASX Ltd., is expected to approve the nation's first spot-Bitcoin exchange-traded funds on the main board.

The people who wished to stay nameless because of the privacy of the information, disclosed this development.

BetaShares, headquartered in Sydney, is actively progressing towards the launch of a product on the ASX, as stated by a spokesperson during an interview.

Additionally, DigitalX Ltd., another local entity, announced in its half-year results in February that it had submitted an application. Meanwhile, VanEck, known for offering similar ETFs in the US and Europe, resubmitted its application in February.

Justin Arzadon, head of digital assets for BetaShares, emphasized that the influx of funds in the US validates the demand for digital assets.

Arzadon further revealed that the company has reserved ASX tickers for spot-Bitcoin and spot-Ether ETFs, underscoring their commitment to expanding their offerings in the digital asset space.

He further added that ASX would be scrutinizing the custody of tokens before giving any sort of approval.

Following the success of US Bitcoin ETFs, which have accumulated a staggering $53 billion this year, including those from BlackRock Inc. and Fidelity Investments, several applications have been submitted.

Additionally, funds directly investing in Bitcoin and Ether are slated to commence trading in Hong Kong starting Tuesday.

As per reports, the Bitcoin ETF issuers would be trying to attract inflows from Australia’s massive $2.3 trillion pension market.

Approximately a quarter of the country’s retirement assets are held in self-managed superannuation programs, where individuals have the autonomy to select their investments. Jamie Hannah, deputy head of investments and capital markets for VanEck Australia, suggests that these programs could potentially become purchasers of spot-crypto funds.

Hannah elaborated that with the inclusion of self-managed super funds, brokers, financial advisers, and platform money, there exists a sizable addressable market capable of bolstering the size of the ETF to a sufficient extent.

This is not the first time that spot Bitcoin ETFs are coming to Australia. Back in 2022, Sydney-based Cosmos Asset Management launched a spot Bitcoin ETF. However, citing meager inflows, it decided to delist it later. Another BTC ETF – Global X 21Shares – which launched the same year has over $62 million in assets under management.