Australian regulators open to Bitcoin ETF with ‘guidelines in place’

The Australian Securities and Investments Fee has clarified its place relating to Bitcoin (BTC)-linked exchange-traded funds. 

In accordance with a Feb. 12 report by the Australian Monetary Overview, the fee addressed the topic after beforehand rejecting a Bitcoin ETF initiative by native firm Cosmos Capital.

Per the report, Cosmos CEO James Manning claimed that ASIC “have a coverage — which they haven’t launched — which says they don’t need an trade traded product, an MIS, listed on an trade.”

Nonetheless, ASIC commissioner Cathie Armour advised the Senate choose committee on monetary expertise Friday {that a} Bitcoin ETF is feasible, as long as there are applicable guidelines in place available in the market on which it’s traded:

“For any merchandise to be quoted on trade markets in Australia, the actual market must have in place guidelines that facilitate the quoting of merchandise […] Not all markets have guidelines in place that do this. […] These merchandise may be made obtainable to Australians via a managed funding scheme regime and Australians can put money into these merchandise in that means.”

Armour stated {that a} Bitcoin ETF might fall below Australian Securities Change’s AQUA Guidelines, that are particularly designed for funding schemes like managed funds, ETFs and different merchandise.

Armour famous that the Nationwide Inventory Change of Australia, on which Cosmos tried to listing its product, doesn’t have such guidelines. 

Australian Securities Change CEO Dominic Stevens stated that the ASX has taken a cautious strategy towards cryptocurrency-related merchandise, however is contemplating them. “The world of bitcoin has modified because the final run, and my intestine really feel is that this dominated by extra company exercise and establishments,” he stated. 

Steve Vallas, head of the Blockchain Affiliation of Australia, advised Cointelegraph that the shift in regulators’ attitudes represents a significant sign for the crypto adoption within the nation:

“Step one in direction of the adoption […] is open communication and a willingness by Authorities to debate the chance, implications and dangers related to the itemizing of merchandise like an ETF. The message being conveyed from ASIC is an important sign to the sector and is welcome information for all concerned within the sector.”

Cosmos Capital is now reportedly planning to listing its Bitcoin ETF on ASX, which might doubtlessly change into Australia’s first ETF linked to Bitcoin. Cosmos didn’t instantly reply to Cointelegraph’s request for remark.