ASIC gives green light to Bitcoin and Ethereum ETF trading

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“Crypto assets have unique characteristics and risks that must be considered by product issuers and market operators to meet their existing regulatory obligations,” said ASIC Commissioner Cathie Armor.

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“The good practices we have published provide practical examples of how these obligations can be met, in a way that keeps investor protection and the Australian markets fair, orderly and transparent.”

The ASIC guidelines will also place a significant burden on market operators such as ASX, who will be required to assess which cryptocurrencies are acceptable for an ETF. This assessment includes whether there is a high level of institutional support for the asset and whether there are a number of reputable service providers for the asset, a mature spot market, a regulated futures market and transparent pricing.

Currently, only the two largest cryptocurrencies, Bitcoin and Ethereum, meet these criteria, although ASIC says it expects the number of cryptos that can meet these requirements to increase over time.

An ASX spokesperson told The Age and the Sydney Morning Herald that the stock operator welcomed the regulatory guidance, saying it was a “positive development”.

“We have worked with a range of issuers interested in launching ETPs that invest in crypto assets and are very aware of the high level of investor interest in products that provide access to those assets,” they said. .

The exchange said it would now assess changes it should make to its rules supporting ETP trading, “as well as those that may be required for other systems, processes and compliance functions that ensure ASX maintains a fair, orderly and transparent market “.

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