The Cboe equities trading platform will publish Australia’s first Bitcoin (BTC) exchange-traded fund (ETF) next week, marking the country’s first big test of widespread client demand for cryptocurrencies.
The clearing house that governs access to the country’s equity capital markets would get the green light for the country’s first Bitcoin ETF after a sufficient number of market participants consented to rigorous margin limitations.
ASX Clear, a prominent clearing house at the heart of Australia’s stock capital markets, now has four market participants prepared to put their money where their mouth is and fulfill the severe margin requirements required to cover the Bitcoin settlement risks.
It is anticipated that three institutional-grade clearing participants and one large retail clearing player are currently willing to pay the 42 percent margin necessary by ASX Clear before trading in a Bitcoin ETF can begin.
Hamish Treleaven, ASX’s chief risk officer, stated:
“We are now at our minimum number of clearing participants and that means we are good to go.”
On April 27, the Bitcoin ETF will be available for trading.
On Wednesday, April 20, Treleaven will notify market participants that ASX Clear has been granted regulatory approval.
Brokers, clearers, clearing participants, market makers, and investors will have seven days to get ready for the new product’s release.
In other words, the Cosmos Asset Management Bitcoin ETF — the only Bitcoin ETF product now listed on ASX Clear – will be allowed to begin trading on the Cboe on April 27, when the market opens. When Australia’s first Bitcoin ETF goes public next week, $1 billion is projected to flow into it.
Opponents claimed that the delay in allowing ASX Clear’s application to trade a Bitcoin ETF was done to protect the ASX trading venue from competition.
Notably, it has been two years since the Australian Securities and Investments Commission (ASIC) informed a Bitcoin financial promoter that a listed retail Bitcoin product was not permissible in Australia at the time.