Bitcoin and Ethereum Exchange Traded Products Could Arrive in Australia, New Report Says

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The Australian Securities and Investments Commission (ASIC) said the country may soon approve Exchange Traded Products (ETP) for qualifying cryptocurrencies.

A new report from ASIC shows that consumer feedback received after a four-week consultation period was overwhelmingly positive for crypto ETPs.

“There was almost unanimous support for ETPs and other investment products that provide exposure to crypto-assets facilitated under the regulatory framework administered by ASIC…

We recognize the interest and demand for ETPs and other investment products that hold cryptoassets in Australia. However, we are also aware of the real risk of harm to consumers and markets if these products are not developed and operated properly. “

According to the ASIC, a cryptocurrency would only be eligible for an ETP if it meets the following criteria:

high level of institutional support and acceptance for investment purposes presence of service providers such as custodians, fund administrators, index providers and market makers willing to support and invest in ETPs exposed to the asset crypto underlying a mature cash market existence of a regulated futures market linked to the crypto asset, the availability of transparent pricing mechanisms.

ASIC believes that only two cryptocurrencies currently on the market have a chance to meet these requirements.

“We have also stated that, in our opinion, the only crypto assets likely to satisfy these factors at this point are Bitcoin and Ether.”

Australia’s main regulator adds that funds seeking to launch Bitcoin or Ethereum ETPs must have a responsible entity that “will ensure that crypto-assets are held securely.”

Eligible funds are also expected to trade crypto assets on platforms subject to Know Your Customer (KYC) and Anti-Money Laundering and Terrorist Financing (AML / CTF) obligations.

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