The Australian Securities and Investments Commission has changed its stand as per Bitcoin-linked exchange-traded funds (Bitcoin ETF).
The Australian’ regulators made this known in a report by the Australian Financial Review. It said although it had rejected previous offers for Bitcoin ETF, it will now consider it.
Why Did The Regulators Reject The Initial Bitcoin ETF Proposal?
The earlier Bitcoin ETF initiative was put forward by Cosmos Capital.
Speaking on the rejected proposal the Cosmos CEO James Manning stated that ASIC had a policy which does not allow an exchange traded product, an MIS, listed on an exchange.
Notwithstanding, ASIC official Cathie Armor told the Senate select panel on financial technology that a Bitcoin ETF is conceivable.
However, there must be suitable standards set up in the market on which it is traded.
Speaking further on the BTC ETF acceptance Armor said;
“For any products to be quoted on exchange markets in Australia, the particular market needs to have in place rules that facilitate the quoting of products.”
She continued that, “not all markets have rules in place that do that. These products can be made available to Australians through a managed investment scheme regime and Australians can invest in these products in that way.”
The Australian Securities Exchange has set of rules made for such investment schemes such as managed funds, ETFs and others. The AQUA rules will enhance standards on each market where the BTC ETF will be traded.
Australia’s Careful Rules Guiding Crypto Assets
With some nations in the world restricting crypto usage, Australia and some others are taking careful measure to ensure it is regulated.
The Head of Australia’s Securities Exchange Dominic Stevens said that the ASX has adopted a mindful strategy toward crypto and crypto related products, although the country is still thinking about them.
Cosmos Capital is currently supposedly wanting to list its Bitcoin ETF on ASX in the wake of this news. If it is successful, it might actually turn into Australia’s first Bitcoin ETF.
Recently Toronto Stock Exchange (TSX) listed Ether Fund following its remarkable $75 million IPO.