Sebastian Sinclair

<div id="highlights-block_625ebf0f96c1e" class="highlights">
 <ul>
 <li>Australia is to receive its first publicly listed bitcoin ETF via Cosmos Asset Management</li>
 <li>The approval follows proposed legislation from Australia&#8217;s ruling party seeking to regulate crypto</li>
 </ul>
 
</div>



Australia is set to receive its first bitcoin ETF as early as next week, the <a href="https://www.afr.com/chanticleer/bitcoin-etfs-get-the-green-light-20220419-p5aela" target="_blank" rel="noreferrer noopener">Australian Financial Review</a> reported Monday.



Cosmos Asset Management&#8217;s bitcoin ETF — the first of its kind for Australia — stands poised to take the crown following a green light from the country&#8217;s primary clearinghouse for capital markets, ASX Clear.



Trading could begin on <a href="https://www.cboe.com.au/about-cboeaustralia" target="_blank" rel="noreferrer noopener">Cboe Australia</a> as early as April 27 following a seven-day notice period to investors, clearing participants, brokers and market makers, beginning Wednesday.



Like many ETFs centered on the oldest cryptocurrency, Cosmos&#8217; product will invest in shares of the world&#8217;s first bitcoin ETF — the Purpose Bitcoin ETF — which listed via the Toronto Stock Exchange in Canada more than a year ago.



Should demand for Cosmos&#8217; ETF follow a <a href="https://www.purposeinvest.com/thoughtful/purpose-investments-bitcoin-etf-crosses-1-billion-in-assets-under-management-on-one-month-fund-anniversary" target="_blank" rel="noreferrer noopener">similar trajectory</a> to that of Canada, between $550 million to $750 million could flow into the fund within a week as investors scramble to grab hold of one of the world&#8217;s most volatile asset classes while avoiding direct market exposure.



According to the report, ASX Clear has four market participants ready to front the 42% margin requirement for settlement risks, including one retail and three institutional clearing participants.



<a href="https://www.asx.com.au/services/clearing/asx-clear.htm" target="_blank" rel="noreferrer noopener">ASX Clear</a> is the clearing house for all Australian shares, structured products, warrants and Australian Securities Exchange equity derivatives.



Approval of the country&#8217;s first bitcoin ETF follows proposed legislation from Australia&#8217;s ruling party seeking to regulate custody, DAOs, crypto taxation and digital asset service provider licensing, <a href="https://cms.blockworks.co/australia-seeks-licensing-of-crypto-exchanges-via-digital-services-act/" target="_blank" rel="noreferrer noopener">among other measures</a>.



While the incumbent Liberal Party faces an uphill battle at the polling booth in five weeks time, the approval of a bitcoin ETF potentially clears a new path for Australia&#8217;s march toward the nascent asset class.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Start your day with top crypto insights from David Canellis and Katherine Ross. <a href="https://blockworks.co/newsletter/empire">Subscribe to the Empire newsletter</a>.



Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. <a href="https://blockworks.co/newsletter/onthemargin">Subscribe to the Forward Guidance newsletter</a>.



Get alpha directly in your inbox with the <a href="https://blockworks.co/newsletter/research">0xResearch newsletter</a> — market highlights, charts, degen trade ideas, governance updates, and more.



The Lightspeed newsletter is all things Solana, in your inbox, every day. <a href="https://blockworks.co/newsletter/lightspeed">Subscribe to daily Solana news</a> from Jack Kubinec and Jeff Albus.