Australia's financial market is poised for a surge in Bitcoin exchange-traded fund (ETF) launches, mirroring developments in the US and Hong Kong. Major players like Van Eck Associates and BetaShares Holdings are gearing up to introduce their Bitcoin ETFs on the Australian Securities Exchange (ASX).

According to sources familiar with the situation, ASX, responsible for approximately 80% of equity trading in Australia, is likely to approve the listing of the first spot-Bitcoin ETFs on its main board by the end of this year. This move comes as issuers aim to capitalize on the recent crypto rally, which saw Bitcoin reach a record high of nearly $74,000 last month.

The applications for Bitcoin ETFs in Australia follow a similar trend in the US, where American Bitcoin ETFs have amassed $53 billion in assets under management this year, with offerings from industry giants like BlackRock and Fidelity Investments. Additionally, funds directly investing in Bitcoin and Ether are poised to commence trading in Hong Kong on April 30th.

DigitalX revealed its application to establish a Bitcoin ETF in February alongside its half-year results. BetaShares' announcement of reserving ASX tickers for spot-Ether and spot-Bitcoin ETFs, coupled with their pursuit of regulatory approval, has raised expectations.

Justin Arzadon, head of digital assets at BetaShares, noted that inflows into US Bitcoin ETFs serve as evidence of the staying power of digital assets.

Australia's AUD2.3 trillion ($1.7 trillion) pension market presents a significant opportunity for attracting funds into cryptocurrency-backed products. Self-managed superannuation funds, where individuals can select their own investments, hold approximately 25% of retirement assets, according to Jamie Hannah, deputy head of investments and capital markets at VanEck Australia.

Previous attempts to list spot Bitcoin ETFs on the smaller rival CBOE Australia exchange were hindered by low inflows and delistings. However, industry insiders are optimistic about the ASX's potential to host these products.

The ASX is examining token custody and other related matters. Australia seems poised to follow the US trend towards Bitcoin ETFs as the crypto industry evolves and gains acceptance, offering investors a regulated and accessible means to tap into this growing asset class.