Australia’s First Bitcoin ETF To List Next Week: Report

The Australian fund would invest in shares of Canada’s first bitcoin spot ETF, launched by Purpose Investments in early 2021.

• Australia’s first bitcoin ETF is reportedly set to list next week.
• Cosmos Asset Management’s product would invest in Canada’s Purpose Bitcoin ETF, North America’s first bitcoin spot ETF that went live last year.
• The approval is set to come on Wednesday as participants agree on a strict 42% margin requirement for the offering.

The first Australian bitcoin exchange-traded fund (ETF) is set to list on the Cboe next week as the country’s major equity markets clearing house gives participants the green light, reported the Australian Financial Review.

Cosmos Asset Management could launch its bitcoin ETF as early as April 27, according to the report. However, contrary to what has become the norm in similar offerings around the world, Australia’s first bitcoin ETF would not invest in BTC directly, but rather in shares of Purpose Investment’s bitcoin ETF – North America’s first bitcoin spot ETF that began trading in early 2021. Cosmos partnered with Purpose Investments in February.

“ASX Clear, the powerful clearing house at the center of Australia’s equity capital markets, now has four market participants willing to stump up the tough margin requirements needed to cover the settlement risks for this highly volatile asset,” per the report.

ASX Clear had demanded a 42% margin to allow a bitcoin ETF to start trading under its umbrella. There are now three institutional grade clearing participants and one retail clearing participant reportedly willing to provide the necessary margin to trade a bitcoin product.

“We are now at our minimum number of clearing participants and that means we are good to go,” said Hamish Treleaven, chief risk officer at ASX, per the report.

Cosmos, which is owned by Nasdaq-listed bitcoin miner Mawson Infrastructure Group, tip-toed into the cryptocurrency fund management industry last year with an offering that invested in bitcoin mining firms, the Global Digital Miners Access ETF.

According to the report, other asset management companies interested in listing bitcoin-linked ETFs in Australia include ETF Securities, VanEck Australia, BetaShares, and Monochrome Asset Management.

UPDATE (April 19, 2022 – 1:12 p.m. ET): Clarifies that Cosmos' bitcoin ETF will list on the Cboe throughout.